Normalizing relations between Arabs and Israel is the on of the most complicated issues in the Middle East that is connected with the great powers and most of countries in the region. Iran is one of the countries that is severly threatened in the process of normalization of relations between Israel and the Arabs. Since the formation of the modern Middle East after second World War, the Arabs continuesly had confronted with two major threat; first, threat of creation of independent Jewish country in the Arabs territories and the second, threat of shiite reveloutionary Iran that has tended to export its ideas and concepts to the Arab world. The main question of the article is the why the Arabs have proceded to normalization of their relations with Israel while they feel threatened by both of above developments? This article with focus on descriptive-explanative method and using a threat balance approach argues that the main reason of the normalization of relations, on the one hand can be found in continiously increasing level of Iran s threat against the Arabs and in the other hand, in the decrease in severity of Israel s threats against them. As a result, the normalization of relations between them has occurred due to Iran s simultaneous threat to the Arabs and Israel.