I'm in the middle of reading How Israel Lost: The Four Questions, by Richard Ben Cramer.
If you have even a faint interest in what's going on in the Middle East I urge you to pick this book up. It provides a vivid and sometimes frightening insight into modern (and historic) Israel and the occupied territories. The writer is a funny guy, and manages to point out the ironies and black humor inherent in the region without being disrespectful. Before reading this book I saw Israel and her people as a monolith. Now I can start to appreciate the mind-blowing and energetic diversity crammed into such a tiny nation. More importantly, it helped me to get a handle on Israeli attitudes and policy, which often seem so reactionary and closed-minded.