The correct answer is Israel and Jordan.
On 26 October, 1994, Jordan and Israel signed a peace treaty. The ceremony was held in the Arava valley in Israel, near the Jordanian border. The treaty was signed by Israel's Prime Minister Rabin and Jordan's Prime Minister Abdelsalam al Majali. The President of Israel, Ezer Weizman, shook hands with King Hussain.
This treaty had been coordinated by the U.S. President Bill Clinton, was was present at the signing of the treaty and added his signature to it.
With the treaty, the two long term rivals settled long-standing water and land disputes and agreed to a better cooperation in trade and tourism. Jordan became only the second Arab state ( after Egypt ) to normalize relations with Israel.
