Shaykh Bin Baz said, “Making peace with the Jews or other disbelievers does not necessitate support and friendship. It ensures that both sides enjoy safety and peace and may engage in other dealings such as sale, purchase, and exchange of ambassadors. These actions do not require the Muslims to support or befriend the disbelievers.
The Prophet (peace be upon him) concluded peace treaties with the people of Makkah. This act did not force the Muslims to befriend or support the pagans, but the feelings of hatred remain until the Opening of Makkah and people entered into the religion of Allah (Exalted be He) in multitudes.
Similarly, he (peace be upon him) made peace with the Jews of Al-Madinah for an unlimited period when he emigrated to Al-Madinah. He (peace be upon him) used to buy things from them, talk to them and call them to Islam but it was not necessary to befriend or support them.
Furthermore, the Prophet (peace be upon him) died while his armor was in pawn with a Jew in return for food.
When Banu Al-Nadir, a Jewish tribe, committed high treason, they were expelled from Al-Madinah.
When Qurayzhah breached the covenant and joined a besieging army of the enemy that came from Makkah to fight the Prophet (peace be upon him) on the Day of Ahzab, the Prophet (peace be upon him) fought them killing their leaders and taking their women and offspring captives. When Sa`d Ibn Mu`adh (may Allah be pleased with him) judged them, he judged that the men must be killed and the women and children taken captives.
So, the Prophet (peace be upon him) said that he judged according to the judgment of Allah (Exalted be He) from above the seven heavens.
The Muslims among the Sahabh and their followers often declared a truce with the Christians and other non-Muslims without having to support or befriend them.
Allah (Glorified be He) says, Verily, you will find the strongest among men in enmity to the believers (Muslims) the Jews and those who are Al-Mushrikûn. [Sooratul-Maa‘idah 5:82]
Allah (Glorified be He) also says: Indeed there has been an excellent example for you in Ibrâhîm (Abraham) and those with him, when they said to their people: “Verily, we are free from you and whatever you worship besides Allâh: we have rejected you, and there has started between us and you hostility and hatred for ever until you believe in Allâh Alone” [Sooratul-Mumtahinah 60:4]
He (Glorified be He) also says, O you who believe! Take not the Jews and the Christians as Auliyâ’ (friends, protectors, helpers), they are but Auliyâ’ of each other. And if any amongst you takes them (as Auliyâ’), then surely he is one of them. Verily, Allâh guides not those people who are the Zâlimûn (polytheists and wrong-doers and unjust).[Sooratul-Maa‘idah 5:51]
Allah (Glorified be He) also says: You (O Muhammad صلى الله عليه وسلم) will not find any people who believe in Allâh and the Last Day, making friendship with those who oppose Allâh and His Messenger (Muhammad صلى الله عليه وسلم), even though they were their fathers or their sons or their brothers or their kindred (people).[Sooratul-Mujaadilah 58:22]
There are many Ayahs that convey the same meaning.
Here is another situation showing that making peace with the Jews or other disbelievers, when necessary, does not necessitate supporting and befriending them.
When the Prophet (peace be upon him) conquered Khaybar, he made peace with the Jews and agreed that they take care of the palms and fields and the harvest was to be halved between them and the Muslims. This agreement was unlimited and they stayed in Khaybar under this agreement as the Prophet (peace be upon him) said, We will let you stay on this (condition), as long as we will.According to another narration, “We will let you stay, as long as Allah will let you stay.”  They stayed there until `Umar (may Allah be pleased with him) evacuated them. It is narrated that when `Abdullah ibn Rawahah (may Allah be pleased with him) estimated the value due on the fruits of the palm trees one year, they alleged that the value was unjust. He (may Allah be pleased with them) told them, “By Allah! My hatred for you and my love for the Muslims will never make me treat you unjustly. If you will, accept my bulk assessment of the outcome that I made for you; otherwise we accept it all.”
Hence, these situations indicate that making peace treaties and truce with the enemies of Allah does not require us to support or befriend them, as some of those who are not aware of the rulings of the purified Shari`ah believe.
It should be clear that making peace treaties with the Jews or other disbelievers does not require us to change the educational curriculum or other dealings based on support and befriending. May Allah grant us success.
 Narrated by Al-Bukhari, Book on sharecropping, Chapter on when the Owner of the land says, “I will let you remain as long as Allah lets you remain”…, no. 2338; and Muslim, Book on sharecropping, Chapter on sharecropping in return for part of the fruits and plants, no. 1551.
 Narrated by Al-Bukhari, Book on conditions, Chapter on when a precondition is made in the sharecropping: “If I wish, I can expel you.”, no. 2730.’
(My words – Abdul Kareem Ibn Ozzie)
Shaykh Mohammed Bazmool has pointed out that though Muslims can make peace treaties with the kuffar, even ones more in favour of the kuffar, we have been prohibited from making permanent ever lasting peace treaties with them.
But we can have peace treaties in which each party is free to cancel the treaty at anytime while giving notice to the other that they are cancelling the treaty.
Also the shaykh explained that the Muslims can make peace treaties for a time bound period, like making a peace treaty for 10 years for example.
He further asserted that the prophet Mohammed made with the kuffar time bound peace treaties and open end peace treaties, which could be cancelled at any time by the Muslims or the kuffar.
But the shaykh emphasised that the prophet never made permanent ever lasting peace treaties with the kuffar with no option of cancellation by either side.
The article discussing this issue can be found on dusuunah.com inshallah.
Ref: Alifta.com – Fatwas Of Ibn Baz
Posted by Abdul Kareem Ibn Ozzie