rather the second one. You can see that Hesbollah and Iran use the Palestinian issue as legitimation for its aggression against Israel. The Palestinian issue is also a very sensible one across the Arab world. Once that's solved, it will undermine the legitimacy of organisations as Hesbollah and Hamas, as well as the Iranian foreign policy in the Middle East. Also president Assad said during an interview on BBC that there cant be real peace in the region without a final deal between Israel and palestine, which he would be ready to support if Israel disengages from Golan at the same time.
It's an illusion to think that you can keep the Westbank and Eastern Jerusalem occupied forever while at the same time achieving normalisation of the relations with the Arab world. The Palestinian question is the core issue, and everything else (Hezbollah, Iran, Hamas, etc.) evolved from that problem.

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