Israel should make peace with the Palestinians. It is only Israel that can decide to have peace, because it is the overwhelmingly more powerful side, militarily and in every other way, and even if Hamas put down its weapons and surrendered, there would be no peace if Israel did not agree to it.
And just to be sure this is well understood: Israel does not want peace. Israel has maintained its brutal occupation of the Palestinian territories for years well before Hamas, it has broken ceasefires left and right for years, it has continued to massacre the Palestinians every chance it gets, it has continued to settle more and more of the lands where the Palestinians live, and even when the top leadership of Hamas proposed a long-lasting truce, Israel responded by assassinating them, just in case anyone took them to their word:
According to Tristan Dunning, Israel has never responded to repeated offers by Hamas over subsequent years for a quid pro quo moratorium on attacks against civilians.[176] It has engaged in several tadi'a (periods of calm), and proposed a number of ceasefires.[176] In January 2004, Hamas leader Ahmed Yassin, prior to his assassination, said that the group would end armed resistance against Israel for a 10-year hudna[k] in exchange for a Palestinian state in the West Bank, Gaza Strip, and East Jerusalem, and that restoring Palestinians' "historical rights" (relating to the 1948 Palestinian expulsion and flight) "would be left for future generations". His views were quickly echoed by senior Hamas official Abdel Aziz al-Rantissi, who added that Hamas envisaged a "phased liberation".[178] Israel's response was to assassinate Yassin in March in a targeted Israeli air strike, and then al-Rantisi in a similar air strike in April.[179]
https://en.wikipedia.org/wiki/Hamas#Second_Intifada
And let's not forget that the current leadership of Israel has made it exceedingly clear that it is hell-bent against any ideas of a "two state" solution, that it has complete disrespect for any UN resolutions trying to establish any kind of solution that involves Palestinian independence, and has of course worked hard to reduce the Oslo accords to a farce.