Peace Agreement on the Verge
Trump's $70 Billion Gaza Plan Collapses! Gulf States Deliver Ultimatum to US and Israel
Gulf nations demand political guarantees before funding Trump's proposed $70B Gaza reconstruction, including Hamas disarmament and Palestinian Authority reforms.
US President Donald Trump’s ambitious claim that Arab nations have pledged "tremendous amounts of money" for Gaza's estimated $70 billion reconstruction is facing significant resistance, with major Gulf donors demanding firm political guarantees before committing funds, Bloomberg reports.
Despite the collective endorsement of the peace plan, key regional players, Qatar, the United Arab Emirates (UAE), and Saudi Arabia are pushing back, signaling that the reconstruction effort will be contingent on major concessions regarding both the future of Gaza and Israel’s long-term compliance.
The Gulf’s Non-Negotiable Conditions
According to reporting by Bloomberg, convincing the Gulf states to release funds for the massive rebuilding effort, estimated by the United Nations, is proving difficult, as they prioritize "political clarity" over blank checks.
Hamas’s Future Remains the Red Line
The reluctance across the Gulf is rooted in a fundamental fear: that any investment will be wasted if the region descends back into hostilities.
“They won’t put money into Gaza unless they are first sure this won't happen again,” Yasmine Farouk of the International Crisis Group told Bloomberg. This "entails getting guarantees" from both Hamas and Israel.
While Arab states generally accept Hamas’s exclusion from temporary leadership, a senior Arab official told Bloomberg that totally removing the terror group, which still controls nearly half of Gaza, from political life remains "unrealistic." This potential continued involvement remains a red line for Israel and the US, given the attack on October 7, 2023.
Trump is expected to lean heavily on Qatar for a significant portion of the funding, but Firas Maksad of the Eurasia Group warned Bloomberg that Doha will demand influence.
"Qatar wants influence and a say in Gaza," Maksad said, adding, "That's going to be problematic for Israel."
As a former Jordanian minister, Ibrahim Saif, summarized the situation to Bloomberg:
"It's easy to pledge funding, but realizing it... is something else."
With Egypt set to host a reconstruction conference next month, the pressing questions of postwar Israeli compliance and Hamas's disarmament are currently taking precedence over the simple flow of cash.