Two senior US advisers insisted, during a call with reporters on Wednesday night, that phase one concluded without violations, despite Israel's killing of nine Palestinians and the incomplete return of Israeli bodies.
Trump also took to Truth Social to declare that phase two was officially starting.
The announcement came shortly after an official in Israeli Prime Minister Benjamin Netanyahu’s office told Israeli media that the process remained in its first stage, denying that any second-phase talks had begun.
On Wednesday, an Egyptian source told Asharq Al-Awsat that “negotiations for phase two have not started in practice, only in theory, given the challenges on the ground and Israel’s exploitation of certain gaps, including the dispute over bodies.”
The source added that “deploying international forces is necessary to prevent future obstacles, an effort Egypt is currently working on.”
“We’re not at a point where anyone feels the agreement has been violated. It’s a young agreement in a complex place. But the intent from all sides remains to keep working,” said one of the US advisers.
Washington believes Hamas has so far upheld its commitments under the deal. “They did the right thing,” one official said, referring to the release of all 20 live Israelis and seven bodies out of 28 during phase one. “We now have a mechanism with mediators and them to retrieve as many bodies as possible.”
International involvement
According to US officials, who spoke on condition of anonymity, Turkey has offered to send an 81-member body-recovery team experienced in post-earthquake operations. “We plan to bring them in along with others,” an adviser said.
“We are now figuring out what comes next. Short-term focus is deconfliction to avoid provocations,” he added.
The next step, he explained, involves humanitarian aid, recovering the “remaining (Israeli) bodies,” and restoring order to enable rebuilding and creating “functional areas” of Gaza west of the so-called yellow line, the boundary established during Israel’s withdrawal under phase one.
The aim, he clarified, is to create jobs, housing, and essential services.
“Right now we are aiming for basic stabilization,” he stated. “The international stabilization force (ISF) is starting to be constructed. Planning and conversations are positive; no intent seen to abandon the agreement.”
Officials in Washington speak of an “emerging regional framework” that brings together countries from the Middle East and Asia.
“Many countries have raised their hand,” said the second adviser during the call. “Indonesia comes to mind; many Arab and Muslim countries; the Emirates are in conversations, certainly Egypt, Qatar is talking, and Azerbaijan too.”
Local and regional developers are being approached, but even US officials admit the scale of destruction after two years of Israeli genocidal war makes almost any logistical operation perilous.
“Conditions on the ground are so bad that even reaching food distribution centres is hard. Roads are impassable,” one official noted. “The Gaza Strip has been pulverized. Very few buildings are standing. The debris is immense, with lots of unexploded ordnance.”
United Nations assessments and independent studies estimate that Gaza now holds between 50 and 53 million tons of rubble or more. A UN report from 2024 found that Israel had dropped over 25,000 tons of explosives on Gaza, equivalent to two nuclear bombs.
Even amid the devastation, Gazans are showing remarkable resilience. “No one is forcing Gazans to leave. Some left due to conditions, but these are tough people. They are coming back to their homes, and they’re pitching tents. It’s remarkable to see,” one adviser said in a rare American acknowledgement of the Palestinians’ attachment to their land.
Behind the yellow line
Another key issue that Israel is using as an excuse to undermine the ceasefire is the so-called demilitarization of Palestinian resistance groups.
From Washington’s perspective, that goal remains “very difficult.” “We are defining a path that makes everyone feel safe. It’s not realistic to expect people to drop arms, some in Hamas fear retribution from others,” one official said.
“The dynamic is complex,” he continued, “but the sentiment from Arab mediators and from Hamas is to keep working together toward a solution.”
According to the Americans, the yellow line, established in the first stage of the plan, marks the Israeli withdrawal boundary and the initial buffer for reconstruction.
They believe some areas behind this line, like in Rafah, could be suitable for phase one redevelopment. “Aid is going in, but no rebuilding money will go to areas Hamas controls,” they said.
“We plan to start in Hamas-free areas so we can create functional areas of Gaza that can serve as examples for the rest if the program succeeds,” they added.
The reconstruction bill is already immense. The World Bank estimated months ago that Gaza’s recovery needs amount to tens of billions of dollars, with preliminary assessments for Gaza and the West Bank at roughly $53 billion.
The US military involvement in phase two will remain limited. “Perhaps a dozen to two dozen are currently on the ground setting up operations. These are oversight and coordination roles, not combat, no boots on the ground in a fighting sense,” one official explained.
Politically, the US envisions the formation of a new “technocratic” Palestinian administration to replace both Hamas and the Palestinian Authority with a non-partisan governance model, a scheme formalizing external control over Gaza.
“The aim is to avoid old word games about labels and focus on functionality, security and economic opportunity,” a US official said. “Definitions can follow as conditions improve.”
Yet, behind the technical language lies a human catastrophe. Palestinian health authorities and the UN estimate that since 7 October 2023, more than 67,000 Palestinians have been killed by Israel in Gaza, mostly women and children, and over 170,000 others have been injured, many with permanent disabilities.
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