'Next Day' Scenarios...Hamas’ Defeat, Return of the PA, and the Two-State Solution

 A Palestinian child sits on the rubble of homes destroyed by the Israeli bombing of Khan Yunis. (Reuters)
A Palestinian child sits on the rubble of homes destroyed by the Israeli bombing of Khan Yunis. (Reuters)
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'Next Day' Scenarios...Hamas’ Defeat, Return of the PA, and the Two-State Solution

 A Palestinian child sits on the rubble of homes destroyed by the Israeli bombing of Khan Yunis. (Reuters)
A Palestinian child sits on the rubble of homes destroyed by the Israeli bombing of Khan Yunis. (Reuters)

By the end of the week, 50 days will have passed since Hamas launched the Al-Aqsa Flood operation, and Israel responded with a devastating attack on the Gaza Strip.

While war is not over yet, all indicators suggest that the future of Gaza is being discussed in the corridors of major powers, to determine the shape of what has become known as “the next day.”

But what do we know about the scenarios being drawn for Gaza’s future?

The Defeat of Hamas

Western countries are drawing their scenarios based on the “inevitability” of the war ending with the defeat of Hamas and the movement’s failure to return to ruling Gaza again.

An informed Western source said that the major capitals are convinced that the clashes will not end before Hamas is defeated militarily, while acknowledging that this Palestinian movement is not only a military power, but also an “ideology” that cannot be eliminated by only using force.

“We know that [Hamas] is also an idea, and an idea is defeated by another,” the source remarked, adding that eliminating the group militarily without defeating it as an idea could “make us win the battle and lose the war.”

While the Israeli army penetrated deep into northern Gaza, Hamas, as well as the smaller Islamic Jihad group, are still daily announcing a series of operations, ambushes, bombings, and rocket launches, which means that they are able to continue confronting the invasion, at least, in the foreseeable future.

Hamas and Islamic Jihad fighters are holed up in a network of tunnels that extend under Gaza City and its suburbs.

However, the prominent Western source does not seem convinced that Hamas will hold out for long in northern Gaza.

“Israel is now preparing to launch its expected attack on Khan Yunis,” he said, which means that the goal of eliminating Hamas militarily is not only limited to the northern Gaza Strip only, but will extend to the south as well.

This matter must raise fears of a huge wave of displacement towards the border with Egypt. It is known that Khan Yunis currently houses hundreds of thousands of Palestinians who were originally displaced from northern Gaza, the focus of the current Israeli attack.

Who will fill the void?

If the scenario of “defeating Hamas” is achieved - as Israel and Western countries hope - a problem will arise about who will fill the vacuum after the fall of its rule, which has continued since 2007.

The Western source said that the current focus is on a role for the Palestinian Authority in governing the Gaza Strip, which the Palestinian leadership in Ramallah linked to a broader agreement that includes “ending the occupation” and implementing a political solution that ends with the establishment of a Palestinian state in the West Bank, East Jerusalem, and the Gaza Strip as well.

While the authority of President Mahmoud Abbas refuses to return to Gaza “onboard an Israeli tank,” the scenarios being discussed by Western diplomats place this matter at the top of the possible options in the next stage.

The informed Western source noted that among the possible options is the training of some members of the Palestinian Authority in Gaza in order to manage the Strip in a future stage, noting that the PA is still paying the salaries of thousands of Palestinian employees, who remained in the Strip after Hamas took control of it in 2007, following a short war that ended with the defeat of the PA security forces.

It seems that the bet on the Authority’s new role in managing Gaza came after Western powers failed to convince Arab countries to assume part of this role by sending forces to the Gaza Strip. The prominent Western source acknowledged that the relevant Arab countries categorically rejected this proposal.

Their refusal is seemed to be linked to the conviction that the priority was to stop the war and help the residents of the Gaza Strip humanitarianly, before thinking about “the next day” and who will rule Gaza if Hamas is defeated.

Reviving the “two-state solution”

In light of the Arab refusal to send forces, and the rejection of the Palestinian Authority to assume a role outside the framework of a comprehensive solution, it seems that the Western focus in the next stage will be on reviving the peace process in order to reach the implementation of the two-state solution.

According to the Western source, the United States is telling its interlocutors that it is determined to launch a major effort to implement the two-state solution, based on its conviction that defeating Hamas militarily is not enough, and that the Palestinians need a state that represents them and lives side by side next to Israel.

He added that the Americans publicly announced their rejection of the Israeli re-occupation of Gaza Strip, as well as any idea of changing its current borders, noting that Washington considers that the features of the solution are defined in the establishment of a Palestinian state on the 1967 borders, with a “land exchange” between the two parties, in reference to previous understandings and discussions on this matter between the Palestinian Authority and Israel.

Nonetheless, Egyptian President Abdel Fattah El-Sisi said on Friday - as he welcome the Spanish and Belgian prime ministers in Cairo - that reviving the two-state solution path was an exhausted idea, stressing the need to move “to recognize the Palestinian state and bring it into the United Nations.”

Regardless of the Egyptian position, the US effort to revive the two-state solution could face more than one obstacle in the next stage.

First, there is the “Israeli obstacle”. Benjamin Netanyahu’s government includes some extremist settlers who reject the establishment of a Palestinian state, and who insist on expanding settlement in the West Bank, which they call Judea and Samaria, according to the biblical name.

Pushing towards the formation of a Palestinian state will undoubtedly portend the fall of Netanyahu’s government and the holding of new elections, in which right-wing extremists may achieve significant results.

Second, the Biden administration will face another domestic obstacle, represented by a difficult electoral campaign against a stubborn opponent, Donald Trump, whom opinion polls give him a significant lead over his Republican rivals, and also over his Democratic opponent, Biden.

If Trump wins, he will not hesitate to provide greater support to Israel, and won’t be enthusiastic about the establishment of a Palestinian state on the lines demanded by the Palestinian Authority.

A third point must be solved before discussing “the next day”, which is the “Hamas” obstacle. All the scenarios presented are based on the fact that the movement will be defeated militarily and its rule will end. But that has not been achieved yet. Pending its realization, the West Bank and the Lebanese border fronts may explode, and the confrontation between the US and the pro-Iranian militias may expand in both Syria and Iraq, and perhaps in Yemen as well.



Iraq Negotiates New Coalition Under US Pressure

Election workers count ballots as they close a polling station, during the parliamentary elections in Baghdad, Iraq, Nov. 11, 2025. (AP)
Election workers count ballots as they close a polling station, during the parliamentary elections in Baghdad, Iraq, Nov. 11, 2025. (AP)
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Iraq Negotiates New Coalition Under US Pressure

Election workers count ballots as they close a polling station, during the parliamentary elections in Baghdad, Iraq, Nov. 11, 2025. (AP)
Election workers count ballots as they close a polling station, during the parliamentary elections in Baghdad, Iraq, Nov. 11, 2025. (AP)

More than a month after Iraq's parliamentary elections, the country's top leaders remain locked in talks to form a government while facing pressure from Washington to exclude Tehran-backed armed groups.

Amid seismic changes in the Middle East, where new alliances are forming and old powers waning, Iraqi leaders face a daunting task: navigating relations with US-blacklisted pro-Iranian factions.

The US has held significant sway over Iraqi politics since leading the 2003 invasion that ousted long-time ruler Saddam Hussein.

But another specter also haunts Iraq's halls of power: Washington's arch-foe, Iran.

Iraq has long been caught between the two, with successive governments negotiating a delicate balance.

Now, after November's election, Washington has demanded the eventual government must exclude Iran-backed armed groups and instead move to dismantle them, Iraqi officials and diplomats told AFP.

A State Department spokesperson, speaking on condition of anonymity, said: "Iraqi leaders well know what is and is not compatible with a strong US-Iraq partnership".

Washington, the spokesperson said, "will continue to speak plainly to the urgency of dismantling Iran-backed militias".

But some of these groups have increased their presence in the new chamber and have joined the Coordination Framework, an alliance of Shiite parties with varying ties to Iran and which holds the majority.

For weeks, the Coordination Framework has been embroiled in talks to nominate the next prime minister.

"The US has put conditions that armed factions should not be part of the new government," a senior Iraqi official said. The factions must disarm and "sever ties with Iran's Revolutionary Guard," he added.

In recent tweets, the US special envoy to Iraq, Mark Savaya said that Iraqi leaders are at a "crossroads".

Their decision "will send a clear and unmistakable signal to the United States... that Iraq is ready to claim its rightful place as a stable and respected nation in the new Middle East.

"The alternative is equally clear: economic deterioration, political confusion, and international isolation," Savaya said.

The US has blacklisted as "terrorist organizations" several armed groups from within the pro-Iran Popular Mobilization Forces, a former paramilitary alliance now integrated into the armed forces.

They are also part of the Iran-backed so-called "Axis of Resistance" and have called for the withdrawal of US troops -- deployed in Iraq as part of an anti-ISIS coalition -- and launched attacks against them.

Most of these groups hold seats in parliament and have seen their political and financial clout increase.

The Asaib Ahl al-Haq faction, led by Qais al-Khazali, who is a key figure in the Coordination Framework, won 27 seats in the latest election, making it harder to exclude it from the government.

A potential compromise is to deny it a key portfolio, as in the current government.

"The US has turned a blind eye before, so they might after all engage with the government as a whole but not with ministries held by armed groups," a former Iraqi official said.

Other blacklisted groups are:

+ Kataeb Hezbollah, one of the most powerful armed groups, supports a parliamentary bloc (six seats).

+ Kataeb Sayyid al-Shuhada, Kataeb Imam Ali and Harakat Ansar Allah al-Awfiya.

+ The al-Nujaba movement is the only group that has steered clear of elections.

Iraq has its economic growth to worry about.

After decades of turmoil, it has only begun to regain a sense of normalcy in recent years.

Washington has already imposed sanctions on several Iraqi entities and banks, accusing them of helping Tehran evade sanctions.

But Iraqi leaders hope for greater foreign investments and support partnerships with US companies.

The most striking endorsement came from Khazali, an opponent of the US military presence who now argues that it would be in Baghdad's interest for major US companies to invest.

Since the Israel's war with Hamas in Gaza began in October 2023, Iraq has remained relatively unscathed by the turmoil engulfing the Middle East.

Iraqi armed groups did launch attacks on US troops and largely unsuccessful ones on Israel. Washington responded with heavy strikes, and the attacks have long since halted.

Iraq remained the only close regional ally of Iran to stay out of Israel's crosshairs.

So far, the US has acted as a buffer, helping to prevent an Israeli attack, but Iraqis have been warned of strikes against the armed groups, multiple sources said.

But as the presence of American forces dwindles, fears are growing.


Bethlehem Camp's 'Lifeline' Football Field Faces Israeli Demolition

 Displaced Palestinian youths take part in a training session at the Aida Refugee Camp's football pitch, next to the separation wall outside Bethlehem in the occupied West Bank, on December 16, 2025, a few weeks after an Israeli military decision to demolish the field. (AFP)
Displaced Palestinian youths take part in a training session at the Aida Refugee Camp's football pitch, next to the separation wall outside Bethlehem in the occupied West Bank, on December 16, 2025, a few weeks after an Israeli military decision to demolish the field. (AFP)
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Bethlehem Camp's 'Lifeline' Football Field Faces Israeli Demolition

 Displaced Palestinian youths take part in a training session at the Aida Refugee Camp's football pitch, next to the separation wall outside Bethlehem in the occupied West Bank, on December 16, 2025, a few weeks after an Israeli military decision to demolish the field. (AFP)
Displaced Palestinian youths take part in a training session at the Aida Refugee Camp's football pitch, next to the separation wall outside Bethlehem in the occupied West Bank, on December 16, 2025, a few weeks after an Israeli military decision to demolish the field. (AFP)

Earlier this month a group of Palestinian boys turned out to train at their local football pitch in the shadow of the wall separating Israel from the West Bank's Aida refugee camp -- and found a note at the gate.

The children took the ominous message from Israeli authorities to Muhannad Abu Srour, sports director at the Aida Youth Center in the camp near Bethlehem, and the news was not good.

"We were shocked to discover that it was a decision to demolish Aida camp's football field," Abu Srour told AFP, adding that more than 500 children regularly train on the field roughly half the size of a regulation soccer pitch.

"The football field is the only open space we have. If the field is taken away, the children's dream is taken away," Abu Srour said.

The planned destruction of the Aida field is one of many points of contention in the occupied West Bank, but it is a particularly painful one for young Palestinians yearning for a better future.

One of the older members, 18-year-old Abdallah al-Ansurur, hopes to make it into the national Palestinian team, and, like many other youth at Aida camp, took his first steps in the game on the pitch flanked by the eight-meter concrete Israeli wall.

"I started when I was about 13 years old. This field gave me a real opportunity to train," said Ansurur, who was born and raised in Aida camp, one of the smallest in the West Bank.

Ansurur, who trains to be a goalkeeper, calls the astroturf-covered piece of land a "lifeline".

"Without this field, I wouldn't have had this chance. If it didn't exist, we'd be playing in the streets -- or not playing at all," he said.

Israel has occupied the West Bank since 1967 and frequently demolishes Palestinian homes or infrastructure, arguing they were built without permits.

AFP was shown the note from COGAT, the Israeli defense ministry body in charge of Palestinian civilian affairs, which says the field was not authorized.

But Anton Salman, who was mayor of adjacent Bethlehem when the field was built in 2021, told AFP the construction was legal.

Salman said his municipality leased the land from the Armenian Church authorities to whom it belongs, before allowing Aida camp's popular committee to manage it for the benefit of residents.

Saeed al-Azzeh, head of the popular committee, confirmed the information, calling the space, "the only breathing space" for camp residents.

"Today, more than 7,000 people live on the same piece of land. Streets are narrow, alleys are cramped -- there is nowhere else," Azzeh said, referring to the camp.

Like other Palestinian refugee camps, Aida was built to accommodate some of the hundreds of thousands of people who either fled their homes or were forced out during the creation of Israel in 1948.

With time, tents gave way to concrete buildings, with the football field representing one of the few open spaces in the camp's dense patchwork.

Abu Srour is proud of what came out of the field, with youth sports delegations able to travel abroad to play, a welcome escape from the West Bank's myriad restrictions.

This is because checkpoints, a fixture of the West Bank since the start of Israel's occupation, have multiplied since the start of the war in Gaza.

Abu Srour mentioned that bringing a local team to Ramallah, a city 20 kilometers (12.5 miles) away as the crow flies, took six hours recently, instead of one hour in the past.

Restricted mobility is a major issue for most Palestinian athletes as it makes it nearly impossible for athletes of similar levels from different cities to train together.

Waseem Abu Sal, who was the first Palestinian boxer to participate in the Olympics, told AFP he frequently sparred with athletes of different levels or weight categories for lack of mobility.

Taking a short break from running a practice for 50 excited five- to 10-year-old boys, coach Mahmud Jandia told AFP he hoped the field would remain.

"Yes, the wall is there -- it feels like a prison -- but despite that, the most important thing is that the field remains and the children keep playing."

"If the field is demolished, all the children's dreams will be demolished with it."


Worn Banknotes, Tobacco Taxes: How Hamas Pays Its Members

Palestinians shop amid the rubble in Khan Younis in southern Gaza, February last year (DPA)
Palestinians shop amid the rubble in Khan Younis in southern Gaza, February last year (DPA)
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Worn Banknotes, Tobacco Taxes: How Hamas Pays Its Members

Palestinians shop amid the rubble in Khan Younis in southern Gaza, February last year (DPA)
Palestinians shop amid the rubble in Khan Younis in southern Gaza, February last year (DPA)

More than two months after a fragile ceasefire between Israel and Hamas took effect in Gaza, the group has steadily reasserted some security control in areas under its authority. Yet for Gaza’s residents, daily economic hardship and deteriorating living conditions show little sign of easing.

Hamas’s popular base, made up of its members, their families, and supporters, remains a key pillar of its strength. Nearly two years of war with Israel have partially disrupted the group’s ability to consistently pay salaries.

During the war, Israel sought to dry up Hamas’s financial network by killing figures responsible for transferring money inside Gaza, as well as raiding currency exchange companies in the occupied West Bank that Israeli authorities said were linked to Palestinian factions.

According to field sources and Hamas officials who spoke to Asharq Al-Awsat, the group faced difficulties and delays in paying salaries regularly at leadership, field and other levels due to security conditions.

It has since resumed partial payments to all its members, including leaders and fighters from the Izz al-Din al-Qassam Brigades, Hamas’s armed wing, while paying lower rates to its preaching and social apparatus, described as civilian elements.

Where does Hamas get its money?

Sources agree that Hamas has managed to preserve some of its financial resources, including commercial activities inside and outside Gaza. One Hamas source said these business revenues generate income for the group alongside funds received from supporting parties such as Iran and others.

They added that such external support fluctuates, sometimes declining, increasing or arriving with delays for reasons related to the donors.

The source said Hamas faces growing difficulties in transferring funds into Gaza, forcing those overseeing salary payments to rely on whatever cash remains accessible in their reserves or to collect revenues from their own commercial sources.

How are salaries paid?

Sources who receive some of these payments told Asharq Al-Awsat, on condition of anonymity, that salaries and stipends were sometimes paid regularly each month but were also delayed by periods ranging from six weeks to two months.

A Hamas source said salary rates varied and did not exceed 80 percent at best, particularly for leaders and operatives in the Qassam Brigades and at the political level.

Lower percentages were paid to the preaching and social apparatus and other bodies, alongside allocations for activities aimed at supporting the population and what the group calls its popular base.

The source said the lowest rates were paid to government employees at both civilian and military levels, reaching 60 percent at most before declining in recent months to around 35 percent.

Several sources said Hamas continues to pay stipends to the families of its members and leaders killed over decades of its activities, as well as to prisoners and wounded fighters.

They added that the group also supports families whose salaries were cut by the Palestinian Authority, continues to provide social assistance and allocates funds to projects aimed at supporting its popular base, including food aid, water provision and communal kitchens, in coordination with foreign institutions.

Asked how salaries are delivered, Hamas sources said payments are made through tight networks and by hand to avoid Israeli monitoring of electronic wallets and banks.

Worn banknotes and tobacco taxes

As Hamas relies on manual delivery, questions remain over how it secures cash under Israel’s blockade. A Hamas source said the process was complex and could not be disclosed for security reasons.

Local sources outside Hamas said the group depends heavily on traders to obtain cash, alongside its existing cash reserves and revenues from businesses it operates.

One source said Hamas often pays worn banknotes to government employees in particular, and to a lesser extent to Qassam fighters and political figures. This forces recipients to manage on their own as most traders refuse to accept damaged or worn currency.

Hamas has encouraged some small traders, especially fruit and vegetable sellers, to accept such notes in exchange for continued support and access to goods at lower prices.

Another source said Hamas has imposed taxes on certain goods, such as tobacco products, to raise funds, noting that most cigarette traders deal in cash rather than electronic wallets, which many Gaza residents now rely on.

Israeli accusations against Iran

On Dec. 7, Israel accused Iran of supporting what it described as a banking network transferring hundreds of thousands of dollars to Hamas. Israel said the network consisted of Gaza-based money changers residing in Türkiye who exploit the country’s financial infrastructure for what it called terrorist purposes.

According to Israel, the network operated in full cooperation with the Iranian regime, transferring funds to Hamas and its leaders and managing wide ranging economic activity involving receiving money from Iran, storing it and transferring it to Hamas via Türkiye.

Israel published the identities of three individuals, including an official in Hamas’s financial apparatus and two money changers from Gaza, claiming they worked under the direction of Khalil al-Hayya.

Sources familiar with the two men told Asharq Al-Awsat they have lived outside Gaza for many years.

One was known to work with various Palestinian factions and had previously smuggled funds for them, including through tunnels along the Egyptian border, while also operating as a businessman in multiple fields beyond currency exchange.

Hamas sources dismissed the accusations as baseless, saying the group has its own methods for transferring funds.

They said Hamas often faces difficulties moving money from abroad into Gaza, a problem that also affects the West Bank due to Israeli pursuit and Palestinian Authority security pressure, though conditions there are better than in Gaza for transferring funds.

Sources from other Palestinian factions said they are also suffering financial crises and difficulties paying salaries and stipends to their members and leaders.

They said they sometimes distribute food aid and other assistance to help their members and families cope with harsh economic conditions, with most of the support coming through institutions backed by Iran or other parties.