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Gaza Ceasefire Faces Collapse as Israel Blocks Aid and Arab Leaders Propose Reconstruction Plan

Israel's blockade and stalled negotiations jeopardize a fragile truce, while Arab nations back a $53 billion plan for Gaza's reconstruction without displacement.

Egypt's Foreign Minister Badr Abdelatty meets with Palestinian Prime Minister Mohammad Mustafa at the Al Tahrir palace to discuss details of the Gaza reconstruction plan, ahead of the emergency Arab summit organised by Egypt this week, in Cairo, Egypt March 3, 2025. REUTERS/Amr Abdallah Dalsh/File Photo
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A tent camp for displaced Palestinians is set up amid destroyed buildings in the west of Al-Shati camp, west of Gaza City, on Monday, March 3, 2025. (AP Photo/Jehad Alshrafi)
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Overview

  • Phase one of the Gaza ceasefire agreement, involving hostage exchanges, concluded on March 1, but phase two discussions have stalled as Israel resists key terms.
  • Israel implemented a full blockade on Gaza, halting humanitarian aid to pressure Hamas into extending hostage releases without advancing to phase two of the truce.
  • Arab leaders endorsed Egypt's $53 billion Gaza reconstruction plan, which aims to rebuild the territory by 2030 without displacing its population, countering U.S. President Trump's controversial relocation proposal.
  • The Egyptian plan envisions an interim administration of independent Palestinians in Gaza, eventual Palestinian Authority control, and international peacekeeping forces in Gaza and the West Bank.
  • Hamas remains resistant to relinquishing arms and control, while Israel rejects any role for Hamas in Gaza's future governance, raising fears of renewed conflict.