US ‘Conditional Proposal’ to Assad and Netanyahu 2011: Abandon Iran in Exchange for Restoring Golan

Asharq Al-Awsat reveals details of last chapter in negotiations between Syria and Israel

President Bashar Assad meets with John Kerry when he was chairman of the Senate Foreign Relations Committee on Nov, 8, 2010. AP file photo
President Bashar Assad meets with John Kerry when he was chairman of the Senate Foreign Relations Committee on Nov, 8, 2010. AP file photo
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US ‘Conditional Proposal’ to Assad and Netanyahu 2011: Abandon Iran in Exchange for Restoring Golan

President Bashar Assad meets with John Kerry when he was chairman of the Senate Foreign Relations Committee on Nov, 8, 2010. AP file photo
President Bashar Assad meets with John Kerry when he was chairman of the Senate Foreign Relations Committee on Nov, 8, 2010. AP file photo

Syria and Israel, through American mediation, were on the verge of signing a peace agreement in February 2011, just before the “Arab Spring” protests broke out. The American mediator drafted an agreement that “went further than any previous document.” It included Damascus’ pledge to sever “military ties” with Iran and the Hezbollah party in Lebanon and “neutralizing” any Israeli threat, in exchange for its reclaiming of the Israeli-occupied Golan Heights, based on the June 4, 1967 border.

This was confirmed to Asharq Al-Awsat by officials who were involved in the negotiations, which were held by Syrian President Bashar Assad and Israeli Prime Minister Benjamin Netanyahu and mediated by American envoy Frederic Hof. The negotiations also included at least two meetings with the participation of late Syrian Foreign Minister Walid al-Muallem, legal advisor Riad Daoudi and former US Ambassador to Damascus Robert Ford. Then US President Barack Obama and his Vice President Joe Biden, the current president, were aware of these secret negotiations, which ex-Secretary of State Hillary Clinton was also heavily involved in. No official statement over these negotiations was made by Damascus, which has long expressed its commitment to restoring all Golan territories and maintaining the “strategic relationship with Iran”.

Enticing offer

Former US Secretary of State John Kerry shed light on the secret talks. In his book “Every Day Is Extra”, he revealed that Assad had sent Obama a proposal to establish peace with Israel. When informed of the proposal, Netanyahu was very surprised with it. Kerry revealed that when he served as chairman of the Senate Foreign Relations Committee, he visited Damascus in 2009 where he met with Assad to tackle a number of issues including a peace deal with Israel given that previous attempts by the governments of Yitzhak Rabin, Shimon Peres, Ehud Barak and Netanyahu (1996-1999) ended in failure.

Kerry wrote: “Assad asked me what it would take to enter into serious peace negotiations [with Israel], in the hope of securing return of the Golan Heights, which Syria had lost to Israel in 1967. I told him that if he were serious, he should make a private proposal.”

“He asked what it would look like. I shared my thoughts. He instructed his top aide to draft a letter from Assad to President Obama,” he added. Assad, in his letter, had asked Obama to sponsor a fresh round of Syria-Israel peace talks, expressing his readiness “to take a number of steps in exchange for the return of the Golan from Israel”.

The next day, Kerry flew to Israel where he met with Netanyahu, who had returned to power. Netanyahu, recalled Kerry “was surprised that Assad was willing to go that far, significantly further than he’d been willing to go [previously].”

Kerry said that after meeting with Netanyahu, he returned to Washington with the “Assad offer”. The Obama administration tried to test the extent of the Syrian president’s seriousness by demanding “confidence-building measures” towards the US and Israel, including stopping some arms shipments to Hezbollah, which did not happen.

“I remember hearing that Assad was continuing with exactly the kind of behavior on Hezbollah that we told him needed to stop. It was disappointing but unsurprising,” wrote Kerry.

Iranian strikes

With the launch of peace negotiations in wake of the 1991 Madrid peace conference, overtures between Syria and Israel were made and peaked when Rabin held the so-called “four-legged table” negotiations. They focused on the withdrawal, peace relations, security arrangements and the timetable. Meetings included the Syrian and Israeli chiefs of staff, as well as secret and open negotiations that covered a commitment towards a “complete withdrawal” from the Golan and studying the possibility of “establishing normal peace relations”, security arrangements and opening embassies and border gates along the June 4, 1967 border.

After Rabin was assassinated in November 1995, Peres tried to “soar in the sky with a peace deal with Syria”, rushing to hold negotiations to reach a treaty. Indeed, in early 1996 bilateral negotiations were held but they collapsed after a series of suicide attacks in Tel Aviv, Ashkelon and Jerusalem.

At the time, the Israeli delegation informed its Syrian counterpart during talks in the US that “Iran is behind the attacks because it wants the negotiations to fail” and that “Syria must condemn the terrorist operations,” revealed an informed source. The negotiations ultimately collapsed and Peres launched Operation Grapes of Wrath in Lebanon, which marked the end of his time in government.

Netanyahu then came to power in 1996. Late Syrian President Hafez al-Assad “negotiated” with him through an American mediator, businessman Ronald Lauder, over a “very advanced” detailed agreement in 1998. Netanyahu was succeeded by Ehud Barak, who resumed the negotiations and held a meeting with former Syrian Foreign Minister Farouk al-Sharaa. The talks were sponsored by former US President Bill Clinton. Barak offered an Israeli withdrawal from the Golan towards the June 4 border in exchange for peace and security arrangements. Intense work meetings were held in Shepherdstown near Washington, with attention focused on the thorny water file. The Israelis said that the issue was a “red line” and the Americans offered a “working paper” equivalent to a draft peace treaty.

In early 2000, Barak informed the Americans at the conclusion of another round of negotiations that he could not strike a peace deal because of the “complicated internal situation” that demanded he head back to Israel. He pledged to return to Shepherdstown, but never did.

The final shot at negotiations by a then ailing Hafez Assad was made in March 2000 when he met with Clinton in Geneva. Those talks also collapsed after 20 minutes due to a dispute over Syria’s access to the shores of Lake Tiberias and Clinton’s proposal of a map, which was previously rejected by Assad, of the June 4 border and Tiberias shore.

President Bashar Assad came to power in mid-2000. When Syria was confronted with international isolation following the assassination of Lebanese former Prime Minister Rafik Hariri in 2005, Damascus started to show some flexibility in its desire to hold negotiations with Tel Aviv. It sought to “end the isolation imposed by Washington by holding negotiations with Tel Aviv.” Turkey sponsored the talks, which were held in 2008. The discussions were advanced enough to begin considering the possibility of arranging direct telephone negotiations between Recep Tayyip Erdogan, Assad and then Israeli PM Ehud Olmert in late 2008. The efforts collapsed when Israel launched an operation against the Gaza Strip in December of that year.

The European and American isolation eventually ended. Robert Ford was then appointed ambassador to Damascus in 2010. Washington built on previous efforts, including those exerted by Ankara, and on the Obama administration’s desire to activate the peace path. To that end, it had appointed envoy George Mitchell to test the waters in the Syrian-Israeli negotiations, which remained secret and whom very few figures in each of the involved countries knew about.

On the American side, everyone from Obama, Biden, Clinton, national security advisor Tom Donilon, American Ambassador to Tel Aviv Dan Shapiro and Ford in Damascus knew of the talks. On the Syrian side, the officials who were informed of the talks, in varying degrees, included Assad, Muallem and Daoudi. The latter two had held rounds of talks with Hof and Ford. In Israel, Hof’s meetings were limited to Netanyahu at the official residence of the prime minister. The meetings were attended by then Defense Minister Ehud Barak.

Assad-Hof

The final meeting held as part of this mediation took place between Assad and Hof on February 28, 2011, at the height of the “Arab Spring” that had ousted regimes in Libya and Egypt and whose protests had started to break out in Damascus. Hof, who had worked on drafting the agreement, recalled that some proposals included Damascus’ abandoning of “military relations” with Tehran and Hezbollah in exchange for the Israeli withdrawal from the Golan towards the June 4 border.

Hof is a former US military commander and expert in the demarcation of borders of disputed areas. Back in the early 1990s, he was the first official to draw the June 4 border on the ground. Ford told Asharq Al-Awsat that upon his arrival in Damascus, Hof requested that the ambassador not attend his meeting with Assad. Ford agreed on condition that “that Hof sleep at the ambassador's residence”.

“I telephoned him on an open line so that Syrian intelligence could overhear our conversation. I said, ‘I agree on condition that you and your aide sleep at the ambassador’s residence, so that the Syrians know that we are a single team.’ And this is indeed what happened. Hof later informed me of the details of the meeting, I leave it to him to disclose” what took place during talks with Assad and with the negotiations as a whole.

According to Israeli reports in 2012, Hof’s documents revealed that the negotiations were based on Netanyahu’s readiness to return to the June 4 border, allowing Damascus complete control over the Golan, in exchange for a comprehensive peace deal that includes an Israeli “expectation” that Syria would sever ties with Iran.

Officials who were informed of the talks said Hof was “confident that peace was possible, whereby Assad would end his relations with Iran and Hezbollah and shift his alliances towards America and moderate Arab countries.”

One official told Asharq Al-Awsat: “I did not see the peace agreement draft. It was the beginning of negotiations, not the end.” Another official said: “It was not clear whether the two sides had agreed on a specific timetable or a resolution to the water issue in the Golan. Syria was saying that Israel had no claim over waters beyond the June 4 border. Israel, however, said that even if it could not deploy its military beyond that border, it wanted to maintain logistic presence that would allow it access to the water.”

The water dispute and shore of Tiberias Lake were one of the reasons of the collapse of the Assad-Clinton summit in 2000. Assad at the time had insisted that he wanted to “dip his feet” in the lake, which Barak rejected at the time. In fact, the Israelis paved a road around the shore, making it virtually impossible for the Syrians to access it without a clear agreement.

Some said that the Hof mediation was “conditional-hypothetical”, similar to what had taken place in the mid-1990s when then US Secretary of State Warren Christopher led negotiations by posing “hypothetical” questions to Hafez Assad. “What if Rabin pledged to withdraw fully from the Golan? Are you ready to forge peace (normalize) ties?” At the time, Rabin had placed a “deposit” with Christopher that included the readiness to pullout completely from the Golan if Assad agreed to demands that included peace relations and security arrangements.

One of the officials informed of the Hof mediation said that Netanyahu was “prepared to withdraw completely from the Golan if the Syrians agreed to a peace agreement that includes changing regional approaches and severing ties with Iran.”

A former American official, who is informed of the file, told Asharq Al-Awsat: “There can be no doubt on the seriousness. The negotiations were conditional. The Israelis wanted strategic change in the Syrian approach. Syria wanted to reclaim all territories until the June 4 border. A lot of progress had taken place between both sides.”

“America had no doubt over the seriousness of the negotiations. Assad and Netanyahu were serious in finding out how far the other would go,” he added. “Moreover, great progress, more than ever before, was achieved with Netanyahu over the issue of territories. Hof’s meeting with Assad on February 28 gave a clear signal of what Assad could offer.”

The Americans are keen on stressing that the written draft of the agreement was American. “This is important because envoy George Mitchel did not draft any paper between Netanyahu and [Palestinian] President Mahmoud Abbas (Abou Mazen).” The Americans are also keen to stress that no direct Syrian-Israeli meeting had taken place, but the negotiations had been held through Hof.

Confidence-building

The last attempt at negotiations gains importance on the eve of the tenth anniversary of the eruption of the Syrian protests, especially for Moscow, the main player in Syria that is leading a “confidence-building” mediation between Damascus and Tel Aviv. This meditation includes a prisoner swap, repatriating the remains of Israeli soldiers, sponsoring a return to working with the “disengagement agreement” in the Golan of 2018 and keeping Iran and its militias away from southern Syria.

Another area of significance is word that some Arab countries are interested in opening channels between Damascus and Israel or holding secret meetings to test the possibility of striking a peace agreement and keeping Iran away in exchange for financial “incentives” related to reconstructing Syria and resolving its economic problems.

Tel Aviv did not openly express interest in the political negotiations, especially after President Donald Trump announced in 2019 his support for “Israeli sovereignty” over the Golan and as it has continued to carry out raids against “Iranian positions” in Syria. Damascus, for its part, has not openly expressed interest in peace that does not include a “complete withdrawal” from the Golan and that may “jeopardize its strategic relations with Iran.”

Ford, meanwhile, told Asharq Al-Awsat: “It will be difficult for Assad to presently sign a peace deal with Israel unless he receives a lot in return, because he currently needs the support provided by Iran, its militias and Hezbollah. If they pull out from Syria, who will help the regime control the Syrian Badia, Homs, Sweida and parts of Daraa?”

“Will Damascus obtain western financial aid even if Assad were to sign a peace agreement and open an Israeli embassy in Damascus? It is difficult for the money to flow and for the sanctions to be removed after all the crimes that have taken place in Syria,” he remarked. “Some American sanctions may be removed, such as those related to the blacklisting of terrorist organizations, meddling in Lebanon or the arrival of Arab or European aid. However, the Caesar Act (which came into effect in mid-2020) cannot be simply undone.”

“Assad will not receive any sympathy in America even if a peace agreement is signed. There are limits to what can be offered in exchange to any peace deal,” he added.

Meanwhile, an Arab official, who is informed of Damascus’ position, said: “It is difficult for the regime to agree to sign a peace agreement without receiving a clear guarantee that it will reclaim the whole of the Golan. It is also difficult for the regime to completely disassociate itself from Iran.”

Between these two stances, a senior official, who is informed of the position in Syria, Israel, the region and the US, said: “Perhaps this was the final chapter in efforts to reach a peace agreement between Syria and Israel in the form we have been familiar with in past decades. At best, a new agreement or understanding may be reached, but it will be different than what we have read about and negotiated over for decades.”



Why Metal Prices are Soaring to Record Highs

A salesman displays gold chains at an Indian jewelry store in September. Idrees MOHAMMED / AFP
A salesman displays gold chains at an Indian jewelry store in September. Idrees MOHAMMED / AFP
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Why Metal Prices are Soaring to Record Highs

A salesman displays gold chains at an Indian jewelry store in September. Idrees MOHAMMED / AFP
A salesman displays gold chains at an Indian jewelry store in September. Idrees MOHAMMED / AFP

Precious and industrial metals are surging to record highs as the year ends, driven by economic and geopolitical uncertainty, robust industrial demand and, in some cases, tight supply.

Below AFP examines the reasons for the surge in demand.

- Safe havens -

Gold and silver are traditionally seen as safe-haven assets, and demand has soared amid mounting geopolitical tensions, from US President Donald Trump's tariffs onslaught to wars in Ukraine and Gaza, as well as recent pressure by Washington on Caracas.

Investors are also uneasy about rising public debt in major economies and the risk of a bubble in the artificial intelligence sector.

These uncertainties are driving up gold and silver, with other metals now starting to see the impact as investors seek to diversify their portfolios, explained John Plassard, an analyst at Cite Gestion Private Bank.

"Metal is once again becoming insurance rather than just a speculative asset," he told AFP.

- A weak dollar -

Traditional safe havens like the dollar and US Treasuries have become less attractive this year.

Uncertainty around Trump's presidency and the prospect of further Federal Reserve interest rate cuts, have weakened the dollar, reducing its appeal to investors.

As a result, many investors are turning to gold and silver.

Gold has climbed more than 70 percent this year and passed $4,500 an ounce for the first time on Wednesday, while silver reached a record high of $72 an ounce, with prices up about 2.5 times since January.

A weak dollar is also boosting industrial metals, since commodities priced in dollars become cheaper for buyers when the currency falls.

- Fresh demand -

Industrial demand has surged in recent months, driven by the rise of artificial intelligence and the energy transition.

Copper, used for solar panels, wind turbines, electric vehicle batteries and data centers, has seen strong gains as a result.

Prices hit a record on Wednesday, topping $12,000 a ton, helped further by China, the world's largest copper consumer, announcing new measures to boost demand.

Aluminium, a cheaper alternative to copper, and silver are also benefiting from the AI boom and the shift to renewable energy.

Platinum and palladium, used in car catalytic converters, have also risen, reaching a record high and a three-year high respectively, after the European Union decided to allow sales of new internal combustion vehicles beyond 2035.

- Tight supply -

Copper prices have been lifted this year by fears of US tariffs, prompting companies to stockpile ahead of their introduction, with duties imposed on semi-finished products and potentially extending to refined copper.

Supply risks from disruptions at mines in the Democratic Republic of Congo, Chile and Indonesia have added to the price surge.

Physical markets for silver, platinum, and aluminium are also tight.

According to Ole Hansen, an analyst at Saxo Bank, thin holiday trading, which increases volatility, and investor fear of missing out have further amplified the rise at the end of the year.


How Trump’s Decisions Reshaped Syria

A photo of US President Donald Trump meeting Syrian President Ahmed al-Sharaa in Washington on Nov. 10 (AFP)
A photo of US President Donald Trump meeting Syrian President Ahmed al-Sharaa in Washington on Nov. 10 (AFP)
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How Trump’s Decisions Reshaped Syria

A photo of US President Donald Trump meeting Syrian President Ahmed al-Sharaa in Washington on Nov. 10 (AFP)
A photo of US President Donald Trump meeting Syrian President Ahmed al-Sharaa in Washington on Nov. 10 (AFP)

In a crowded regional and international landscape shaped by overlapping security, strategic, economic, and political pressures, the administration of US President Donald Trump has moved since its return to the White House in January 2025 to recalibrate its approach to Syria.

After years of US policy marked by hesitation and competing agendas, particularly under the administrations of Barack Obama and Joe Biden, Washington is now pursuing a more direct and openly pragmatic course, one focused on achieving tangible results on the ground and managing delicate balances, rather than ideological commitments or long-term strategic gambles.

The shift reflects profound changes inside Syria itself, led by the collapse of the former regime and the emergence of a new government seeking to consolidate domestic legitimacy and secure international recognition.

These developments coincide with the persistent threat posed by ISIS, a retreat in Iranian influence, and the expanding regional roles of Saudi Arabia, Türkiye, and Qatar.

Within this evolving landscape, Washington is repositioning its policy in line with what officials describe as Trump’s Middle East doctrine, centered on enforcing stability, limiting the costs of direct military involvement, and opening pathways for reconstruction, development, and investment.

Interests before ideology

Commenting on this shift, Firas Fahham, a researcher at the Abaad Studies Center, said President Trump’s policy toward Syria could be described as “decidedly pragmatic,” focusing primarily on international and economic interests while setting aside the ideological or intellectual background of Syria’s new government.

Fahham said the central pillar of the emerging convergence between Washington and Damascus was preventing the return of Iranian influence to Syria, a goal that sits at the top of the current US administration’s priorities.

He added that this approach could not be separated from the positions of Arab states allied with the United States, which have openly supported the new Syrian government, led by Saudi Arabia, followed by Türkiye and Qatar.

Fahham said the Trump administration had shown a willingness to respond to these positions, viewing them as a key foundation for rebuilding regional alliances.

Comparing the approach with previous administrations, Fahham said the policies of Obama and Biden had been closer to allowing Iran a free hand in the region and supporting minority influence, particularly through close cooperation with the Syrian Democratic Forces, known as the SDF.

He said this had complicated the landscape and weakened prospects for establishing a strong central state capable of maintaining security and preventing the return of extremist groups.

From Riyadh to Washington...turning points

Fahham traced key milestones in Trump’s new policy, saying the starting point came during meetings held in Riyadh in June, when the US president, at the request of Saudi Crown Prince Mohammed bin Salman, announced the lifting of sanctions on Syria.

He described the move as the first positive signal from Washington toward Damascus. This was followed by a trilateral meeting bringing together Trump, the Saudi Crown Prince, and Syrian President Ahmed al-Sharaa, during which the US president offered notable praise for his Syrian counterpart, reflecting Washington’s desire for political openness.

The most important moment, Fahham said, came at the Washington summit held in November, when Trump received President al-Sharaa at the White House in what he described as a pivotal turning point.

Following the meeting, the US administration began concrete efforts to pressure Congress to repeal the Caesar Act, while announcing Syria’s inclusion in the international coalition against ISIS.

This, Fahham said, shifted the relationship from limited coordination to something resembling an alliance.

The SDF and the future of eastern Syria

On the issue of the Syrian Democratic Forces, Fahham said the Trump administration was dealing with the matter from a strictly practical standpoint, balancing its interests with Syria’s new government, reflected in reduced support for the SDF compared with the Biden era, and its interests with its Turkish ally.

Washington, he said, now views Damascus as the most effective actor in the fight against ISIS.

This assessment, he said, was based on recommendations from US research centers. They concluded that previous reliance on the Kurdish component alone, and practices associated with it in eastern Syria, had created a sense of grievance that ISIS later exploited for recruitment.

As a result, the administration became convinced that cooperation with Damascus was more effective.

In a related context, Fahham said Washington viewed Israeli incursions in southern Syria with dissatisfaction, considering them destabilizing and contrary to Trump’s vision for regional development.

The United States, he added, fears that weakening the Syrian government could reopen the door to renewed Iranian influence and ISIS activity.

As for the southern province of Sweida, Fahham said the US administration supports integrating the province into the state, citing remarks by US envoy Tom Barrack, who stated that decentralization had failed in the Middle East, reflecting a preference for backing a unified Syria.

A parallel reading from the military establishment

From another angle, researcher on armed groups Raed al-Hamed offered a complementary reading of the US position.

He said that although Trump, during his first term, had moved toward withdrawing forces and ending the partnership with the SDF, warnings from senior military commanders about a possible ISIS resurgence after the battle of Baghouz in March 2019 prompted him to keep about 2,000 troops in Syria.

Al-Hamed noted that the partnership with the SDF dated back to the battle of Kobani in 2015, when Washington relied on the group as a ground force.

However, he said the new policy following the fall of Bashar al-Assad’s regime and Syria’s entry into the international coalition was now based on refusing to recognize any independent entity east of the Euphrates and rejecting federal formulas similar to Iraq’s Kurdistan region.

Al-Hamed said the new policy offered no real US guarantees to the SDF in the face of Türkiye and coincided with pressure to integrate the group into Syria’s military and security institutions, in line with the vision of the Syrian government, which rejects any armed presence outside the framework of the state.

This, he said, is still rejected by the SDF as the deadline approaches for implementing the March agreement with the government in Damascus, scheduled for the end of this year.

Overall, the Syrian scene appears to have entered a pivotal phase that goes beyond traditional conflict equations, laying the groundwork for a new reality governed by the language of interests and reciprocal security arrangements.

While Washington and its regional allies, particularly Riyadh and Ankara, are betting on the ability of the new leadership in Damascus to impose stability and end years of chaos, observers say the success of this path will depend on developments on the ground in the coming months.

The ability of the “new republic” to balance the demands of internal reconciliation with the conditions of external alliances will be the decisive test in determining whether this turn truly marks the opening chapter of an end to years of US hesitation in the region.


Thousands Flock to Bethlehem to Revive Christmas Spirit after 2 Years of War in Gaza

 Palestinian scout bands parade toward the Manger Square near the Church of the Nativity, traditionally believed to be the birthplace of Jesus, on Christmas Eve, in the West Bank city of Bethlehem, Wednesday, Dec. 24, 2025. (AP Photo/Mahmoud Illean)
Palestinian scout bands parade toward the Manger Square near the Church of the Nativity, traditionally believed to be the birthplace of Jesus, on Christmas Eve, in the West Bank city of Bethlehem, Wednesday, Dec. 24, 2025. (AP Photo/Mahmoud Illean)
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Thousands Flock to Bethlehem to Revive Christmas Spirit after 2 Years of War in Gaza

 Palestinian scout bands parade toward the Manger Square near the Church of the Nativity, traditionally believed to be the birthplace of Jesus, on Christmas Eve, in the West Bank city of Bethlehem, Wednesday, Dec. 24, 2025. (AP Photo/Mahmoud Illean)
Palestinian scout bands parade toward the Manger Square near the Church of the Nativity, traditionally believed to be the birthplace of Jesus, on Christmas Eve, in the West Bank city of Bethlehem, Wednesday, Dec. 24, 2025. (AP Photo/Mahmoud Illean)

Thousands of people flocked to Bethlehem's Manger Square on Christmas Eve as families heralded a much-needed boost of holiday spirit. The giant Christmas tree that was absent during the Israel-Hamas war returned on Wednesday, overlooking a parade of scouts playing songs on bagpipes.

The city where Christians believe Jesus was born cancelled Christmas celebrations for the past two years. Manger Square had instead featured a nativity scene of baby Jesus surrounded by rubble and barbed wire in homage to the situation in Gaza, The AP news reported.

Cardinal Pierbattista Pizzaballa, the top Catholic leader in the Holy Land, kicked off this year's celebrations during the traditional procession from Jerusalem to Bethlehem, calling for “a Christmas full of light.”

Arriving in Manger Square, Pizzaballa said he came bearing greetings from Gaza's tiny Christian community, where he held a pre-Christmas Mass on Sunday. Among the devastation, he saw a desire to rebuild.

“We, all together, we decide to be the light, and the light of Bethlehem is the light of the world,” he told thousands of people, Christian and Muslim.

Despite the holiday cheer, the impact of the war in the Israeli-occupied West Bank is acute, especially in Bethlehem, where around 80% of the Muslim-majority city’s residents depend upon tourism-related businesses, according to the local government.

The vast majority of people celebrating were residents, with a handful of foreigners in the crowd. But some residents said they are starting to see signs of change as tourism slowly returns.

Loss of tourism devastates Bethlehem “Today is a day of joy, a day of hope, the beginning of the return of normal life here,” said Bethlehem resident Georgette Jackaman, a tour guide who has not worked in more than two years.

She and her husband, Michael Jackaman, another guide, are from established Christian Bethlehem families that stretch back generations. This is the first real Christmas celebration for their two children, aged 2 1/2 and 10 months.

During the war, the Jackamans pivoted to create a website selling Palestinian handicrafts to try to support others who have lost their livelihoods.

During the Gaza war, the unemployment rate in the city jumped from 14% to 65%, Bethlehem Mayor Maher Nicola Canawati said earlier this month.

A visitor from France, Mona Riewer, said that “I came because I wanted to better understand what people in Palestine are going through, and you can sense people have been through a very hard time."

Although friends and family cautioned her against coming due to the volatile situation, Riewer said being in Bethlehem helped her appreciate the meaning of the holiday.

“Christmas is like hope in very dark situations, a very vulnerable child experiencing harshness,” she said.

Despite the Gaza ceasefire that began in October, tensions remain high across much of the West Bank.

Israel’s military continues to carry out frequent raids in what it says is a crackdown on militants. Attacks by Israeli settlers against Palestinians have reached their highest level since the United Nations humanitarian office started collecting data in 2006. Israel captured the West Bank in the 1967 Mideast war.

The internationally recognized Palestinian Authority has limited autonomy in parts of the territory, including Bethlehem. Palestinian President Mahmoud Abbas is expected to attend midnight Mass for the first time in two years, the mayor said.

As poverty and unemployment have soared, about 4,000 people have left Bethlehem in search of work, the mayor said. It’s part of a worrying trend for Christians, who are leaving the region in droves.

Christians account for less than 2% of the West Bank’s roughly 3 million residents. Across the Middle East, the Christian population has steadily declined as people have fled conflict and attacks.

The beginning of a return to normal life Fadi Zoughbi, who previously worked overseeing logistics for tour groups, said his children were ecstatic to see marching bands streaming through Bethlehem's streets.

The scouts represent cities and towns across the West Bank, with Palestinian flags and tartan draped on their bagpipes, drummers spinning mallets adorned with pompoms. For the past two years, the scouts marched silently as a protest against the war.

Irene Kirmiz, who grew up in Bethlehem and now lives in Ramallah, said the scout parade is among her favorite Christmas traditions. Her 15-year-old daughter plays the tenor drum with the Ramallah scouts.

But her family had to wake up at 5 a.m. to arrive in time for the parade and waited upwards of three hours at Israeli checkpoints. The drive previously took 40 minutes without the checkpoints that have increasingly made travel difficult for Palestinians, she said.

“It's very emotional seeing people trying to bounce back, trying to celebrate peace and love,” Kirmiz said.

The Israeli Ministry of Tourism estimates 130,000 tourists will visit Israel by the end of December, including 40,000 Christians. In 2019, a banner year for tourism before the pandemic, the tourism ministry said 150,000 Christian tourists visited during Christmas week alone.

During the previous two years, the heads of churches in Jerusalem urged congregations to forgo “any unnecessarily festive activities.” They encouraged priests and the faithful to focus on Christmas’ spiritual meaning and called for “fervent prayers for a just and lasting peace for our beloved Holy Land.”