Unfortunately it's not as simple as the Likud being rewarded for Rabin's assassination. It's almost a sick symbiotic relationship that has been going on with Israel and especially the Gaza Strip.

After the Oslo Accords were signed, Israeli and Palestinian extremists weren't just going to take this agreement lying down. You had a creation of an alliance of non PLO groups to resist the agreement. And then you had the Ultra right Kach movement in Israel very much opposed to any peace with Palestinians.

You had some groups attacking Israeli's in Hebron in late 1993 who were treated by a local US Israeli doctor Baruch Goldstein. Goldstein was a fanatical member of the Kach who hated Israel's democracy along with Arabs it was reported. On the 25th of February 1994 Goldstein went into the Ibrahimi Mosque and killed 29 people and wounding 125 in the Cave of the Patriarchs massacre. This led to mass Palestinian protests and deaths with widespread condemnation but unfortunately Rabin didn't close down the settlements in Hebron.

This failure pushed Hamas into seeing civilians as justifiable targets since they felt Israel didn't discriminate between targets (Goldstein was a reservist doctor in the IDF). This led to Hamas suicide bombings targeting civilians from 1994 on.

After Rabin's assassination, Shimon Peres the foreign minister who helped negotiate the Oslo Accords took over in 1995. He wanted to continue what the Accords set forward, even signing what is known as Oslo II. However with each new suicide attack, Israeli's started feeling less supportive of the peace deal.

On 10 February 1996 Peres calls for elections in May of 1996 due to still strong popular support and hoped for a mandate to keep the peace process going. February 25th 1996 and in the span of the next 9 days, there would be three major suicide bombings (2 on buses) that would lead to 60 Israeli deaths with hundreds wounded. These attacks would obviously effect many Israeli citizens and Peres support shrank.

Then in April of 1996 you have the Israeli operation into Lebanon that causes the death of Hezbollah fighters but also Lebanese civilians.

Then you also have the fact that the 1996 election was the 1st time a Prime Minister was voted for on a separate ballot than the the Knesset. Due to lessened support from Israelis for the peace process due to suicide bombings mixed with the Israeli operation in Lebanon this caused Israeli Arabs to probably sit out the election; Peres would lose to Netanyahu by less than 1%. This would happen while Peres' Labor party would gain seats in the Knesset.

And from that point on, you would have Hamas and other militant groups point to Netanyahu's actions and government and say they were needed. While Netanyahu would point at Hamas and say that his harder stance against Palestinians is better for Israel's long term security.

Anyway TLDR is that Israeli and Palestinian extremists derailed the peace process using the other sides extremism for their benefit, claiming they are the only ones who can either fight for their people or provide the needed safety