My introductory three would probably be:
These all also have the advantage of being highly readable, intended for a non-specialist audience, and well written. Coll's book, in particular, practically reads like a thriller but is really top notch.
Well the book I started with was APeace to End All Peace: The Fall of the Ottoman Empire and the Making of the Modern Middle East, it covers the years between 1914 - 1924 and how the borders got that way, as well as Zionism and the foundations for Israel. I found it an excellent book and helped me to understand a little bit more about the region. Anything after this era I'll defer to someone more knowledgeable. I hope this recommendation helps!
The Great War for Civilization, by Robert Fisk. There's a chapter devoted to an aspect of the israeli-palestine conflict but more or less every chapter establishes connections with it.
House of Bush House of Saud by Craig Ungers; Sorrows of Empire by Chalmers Johnson
Fawaz A. Gerges's ISIS: A History, while less focused on Israel and dealing very much with recent history, is excellent on how social and political conditions in the Middle East, together with foreign intervention, fomented the rise of groups such as ISIS.
Pity the Nation by Robert Fisk is a good introduction to the Lebanese situation. Also The Six Day War - not sure of the author's name though.
The Looming Tower has good information on Al-Qaeda and the rise of Islamic fundamentalism
Thicker Than Oil is a fantastic book detailing the highly nuanced relationship between the USA and Saudi Arabia.
American Raj, and War at the top of the world are excellent works by Eric Margolis. I found them involving to read, they cover a good length and breadth of modern history, and they're written by an author who's dedicated his life to reporting on the region.
It's not explicitly about the conflict in the Middle East, but Destiny Disrupted provides a ton of good context for the Islamic perspective.