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Tensions over Palestinian Displacement Strain Peace Agreement between Egypt and Israel

Bulldozers with Egyptian and Qatar flags wait to enter Gaza at the Rafah border crossing between Egypt and the Gaza Strip, Thursday, Feb. 13, 2025. (AP)
Bulldozers with Egyptian and Qatar flags wait to enter Gaza at the Rafah border crossing between Egypt and the Gaza Strip, Thursday, Feb. 13, 2025. (AP)
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Tensions over Palestinian Displacement Strain Peace Agreement between Egypt and Israel

Bulldozers with Egyptian and Qatar flags wait to enter Gaza at the Rafah border crossing between Egypt and the Gaza Strip, Thursday, Feb. 13, 2025. (AP)
Bulldozers with Egyptian and Qatar flags wait to enter Gaza at the Rafah border crossing between Egypt and the Gaza Strip, Thursday, Feb. 13, 2025. (AP)

Political tension over US President Donald Trump’s insistence on the displacement of Palestinian residents of Gaza to Egypt and Jordan is threatening to undermine the peace agreement between Cairo and Tel Aviv.

His shocking statements earlier this month have been vehemently rejected by Arab countries. The remarks have not only raised tensions with Israel, but with Washington, which helped broker the peace deal in 1979.

US media quoted Egyptian officials as saying that the treaty was under threat because of the current tensions.

The sentiment was echoed by Egyptian Foreign Relations Committee member Tarek al-Kholy who said Cairo was “serious” about reconsidering the treaty should the Americans and Israelis forge ahead with their displacement plan that threatens Egyptian and regional security.

Kholy said Egypt has repeatedly warned that the forced displacement of Palestinians threatens peace agreements and regional stability.

An Egyptian Foreign Ministry statement earlier this week rejected the displacement of Palestinians, warning against undermining “peace gains” in the region.

Egypt will present a comprehensive proposal to rebuild Gaza that ensures that the Palestinians will remain on their land.

Egyptian officials revealed that Cairo had made it clear to the Trump administration and Israel that it will resist any proposal that would allow the displacement of the Palestinians.

They warned that the peace treaty with Israel would be jeopardized should such a plan go ahead, reported The Associated Press.

Member of the Egyptian Senate Dr. Abdel Moneim Saeed stressed that the peace treaty had led to stability and development in the region.

“The current developments are however threatening the deal,” he told Asharq Al-Awsat.

“The Americans and Europeans are aware of how valuable that treaty is for the Middle East. Without it, there will be terrorism and regional wars,” he warned.

“Egypt is reasonable and preserving the peace agreement. It does not want war,” he added.

So far, it appears that the Trump administration is not concerned about peace, continued Saeed. “Neither he, nor his administration have spoken about it since returning to the White House and that is concerning.”

Egyptian former MP Dr. Amr al-Shobaki said the peace agreement is facing its greatest challenge since its signing in 1979.

He told Asharq Al-Awsat that Trump - the businessman - will likely agree to Egypt’s proposal to rebuild Gaza without the displacement of its people.

He may agree to a middle ground that protects Egyptian, Palestinian and Arab rights without threatening regional security, peace and stability, he remarked.

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Uncertainty Surrounds Gaza Reconstruction Amid Renewed Israeli Strikes

Palestinian children near the tents of the displaced in Khan Younis. (Reuters)
Palestinian children near the tents of the displaced in Khan Younis. (Reuters)
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Uncertainty Surrounds Gaza Reconstruction Amid Renewed Israeli Strikes

Palestinian children near the tents of the displaced in Khan Younis. (Reuters)
Palestinian children near the tents of the displaced in Khan Younis. (Reuters)

Israel’s renewed military strikes on Gaza have cast doubt on efforts to secure international support for the Arab-Islamic reconstruction plan.

Observers and experts argued that rebuilding Gaza is contingent on advancing to the second phase of the ceasefire agreement. They highlighted the roles of Egypt and Qatar in mediation, but acknowledge that Israeli and US support for reconstruction remains uncertain.

Israel launched fresh airstrikes across Gaza on Tuesday, vowing to intensify military action following stalled negotiations with Hamas over hostage releases.

Egypt strongly condemned the attacks, warning they undermine peace efforts. In a joint call, the Egyptian president and the Emir of Kuwait urged the international community to push for an immediate ceasefire, the implementation of a two-state solution, and the establishment of a Palestinian state along the 1967 borders.

Despite the violence, diplomatic efforts to promote the reconstruction plan continued. Dr. Abdel Moneim Said, a member of Egypt’s Shura Council, told Asharq Al-Awsat that negotiations and mediation efforts remain active. He described the plan as a vital step toward Gaza’s recovery and broader regional stability.

Ambassador Mohamed Hegazy of the Egyptian Council for Foreign Affairs echoed this sentiment, emphasizing that while Israel has backed away from the ceasefire agreement, Egypt and Arab nations will continue pushing for peace and rebuilding efforts. Speaking to Asharq Al-Awsat, he hoped that international pressure could prevent further escalation.

Before Israel’s latest strikes, Egypt had intensified its efforts to rally support for the reconstruction plan. Foreign Minister Badr Abdelatty engaged in discussions with officials from Saudi Arabia, the UAE, Jordan, Qatar, Palestine, Türkiye, Nigeria, and Indonesia, focusing on implementing the outcomes of the Cairo emergency summit.

Additionally, the Egyptian Foreign Ministry hosted on Monday a meeting with over 100 ambassadors and international organization representatives to discuss rehabilitating Gaza’s healthcare system. Abdelatty stressed that a lasting ceasefire is essential for successful reconstruction. He also announced plans for a reconstruction conference in Cairo to secure funding.

Dr. Ayman Al-Raqab, a Palestinian political scientist at Al-Quds University, identified Israel as the primary obstacle to rebuilding Gaza.

Only the US has the leverage to persuade Israel to agree to a ceasefire, yet Washington has given Tel Aviv the green light to continue its military campaign, he told Asharq Al-Awsat.

“Washington has not taken any concrete steps to support the reconstruction plan,” Al-Raqab said, adding that progress hinges on advancing to the second phase of the ceasefire—something that has yet to be achieved.

Former Egyptian deputy Foreign Minister Ambassador Rakha Ahmed Hassan argued that Israel has deliberately obstructed reconstruction efforts, evidenced by its resistance to negotiations on the second phase of the truce. He told Asharq Al-Awsat that renewed strikes could further Israel’s alleged goal of displacing Palestinians, a move Egypt and Arab states firmly oppose.

The US position on Gaza’s reconstruction has been inconsistent. State Department spokesperson Tammy Bruce recently stated that the proposed agreement “does not meet expectations,” while former US Middle East envoy Steve Witkoff praised Egypt’s efforts but refrained from endorsing the plan. He acknowledged it as a “good-faith step”, but called for further discussions.

The Arab-Islamic reconstruction plan proposes a six-month transitional governance committee composed of independent technocrats under the Palestinian Authority’s oversight. The plan includes temporary housing for displaced Gazans at seven designated sites, capable of sheltering over 1.5 million people. The total cost is estimated at $53 billion, with an expected five-year timeline for completion.