Egypt Warns of Moves to Derail Gaza Deal, Fragment Reconstruction

Palestinians walk past makeshift shelters at the Nuseirat camp for displaced people in Gaza (AFP)
Palestinians walk past makeshift shelters at the Nuseirat camp for displaced people in Gaza (AFP)
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Egypt Warns of Moves to Derail Gaza Deal, Fragment Reconstruction

Palestinians walk past makeshift shelters at the Nuseirat camp for displaced people in Gaza (AFP)
Palestinians walk past makeshift shelters at the Nuseirat camp for displaced people in Gaza (AFP)

Efforts by mediators to advance the second phase of the Gaza ceasefire agreement are intensifying, as Egypt issues fresh warnings that the process could be obstructed just days before it is due to take effect in January.

Egypt’s position, which rejects fragmenting reconstruction, dividing the Gaza Strip, or accepting Israeli conditions regarding stability forces in the enclave, carries important messages aimed at pressuring Israel ahead of a meeting between US President Donald Trump and Israeli Prime Minister Benjamin Netanyahu on Dec. 29, experts told Asharq Al-Awsat.

They expect Washington to press for the launch of the second phase in light of those Egyptian messages.

German Foreign Minister Johann Wadephul said on Friday that Germany would not take part, for the foreseeable future, in an international force for stability in Gaza under the enclave’s peace plan, which is expected to be deployed next month.

The move has reinforced Egyptian concerns voiced by Diaa Rashwan, the head of Egypt’s State Information Service, who accused Netanyahu of trying to reframe the second phase and confine it to a demand to disarm the resistance, something not stipulated in the agreement and well understood by the United States.

He pointed to Israeli efforts to involve a stability force in roles beyond its mandate, such as disarmament, which participating countries would not accept.

Rashwan said on Thursday, according to state-owned Al Qahera News television, that Netanyahu’s attempts could delay or slow implementation but would not succeed in stopping the second phase.

He added that Netanyahu was seeking by all means to avoid moving to the second phase of the Gaza ceasefire agreement and to push Washington into a confrontation with Tehran, which could reignite Gaza and derail the second phase.

On Thursday, Israel’s Ynet news site quoted a military source as saying Netanyahu would brief Trump on intelligence about the threat posed by Iranian ballistic missiles during their expected meeting before the end of the year.

The source said Israel might be forced to confront Iran if the United States fails to reach an agreement to curb Iran’s ballistic missile program.

Mokhtar Ghobashy, Secretary-General of the Al-Farabi Center for Political Studies, stated that the Egyptian statements were clear and explicit, conveying messages to Israel and Washington ahead of the anticipated visit.

He said that when Egyptian anger reaches the level of direct messaging, Washington considers the need to reach a point of convergence between Cairo and Tel Aviv.

Palestinian political analyst Nizar Nazzal said the Egyptian statements carry genuine messages and concerns about Israel entrenching the status quo from a security rather than a political perspective, in the hope that Washington would move seriously to put an end to it.

Egypt’s position extends beyond expressing concern to include explicit warnings. Egyptian Foreign Minister Badr Abdelatty said on Thursday in an interview with Egyptian television that there were two red lines in Gaza.

The first is rejecting any separation between the West Bank and the Gaza Strip, which he said was impossible as both constitute an indivisible unit of the future Palestinian state. The second red line is rejecting any division of the Gaza Strip.

He added that talk about dividing Gaza into red and green zones, or about areas under direct Israeli control receiving food, water and reconstruction while 90 percent of Palestinians elsewhere are denied basic needs under the pretext of Hamas’ presence, is absurd, will not happen and will not be agreed to.

Ghobashy stressed that when Egypt declares red lines, it marks a firm boundary, noting that there are unacceptable violations on the ground from Cairo’s perspective.

He said Cairo was deliberately sending these messages at this time in the hope of strengthening the mediators’ path toward launching the second phase soon, especially since Washington can impose its will if it chooses, particularly when it comes to pressuring Israel to halt actions obstructing the agreement.

Israel Hayom newspaper reported on Thursday that the anticipated meeting between Netanyahu and Trump would conclude with a statement on progress toward the second phase of the Gaza ceasefire agreement.

Rashwan said that all indicators show the US administration has settled on starting the second phase in early January. He added that Trump’s reception of the Israeli prime minister on Dec. 29 likely signals the actual launch of the second phase without ambiguity.

Nazzal expects Netanyahu, in his meeting with Trump, to try to push a narrative of maintaining Israel’s presence along the yellow line, dividing Gaza and starting reconstruction in the part under Israeli control.

But he said Egypt’s warning messages are a preemptive step to avert any new obstacles or US-Israeli alignment that could disrupt the agreement’s course.



Israeli Fire Kills Five in Gaza and the West Bank, Medics Say

 Election campaign banners showing candidates for the upcoming municipal elections hang on a building in Deir el-Balah in the central Gaza Strip on April 21, 2026.  (Photo by Eyad Baba / AFP)
Election campaign banners showing candidates for the upcoming municipal elections hang on a building in Deir el-Balah in the central Gaza Strip on April 21, 2026. (Photo by Eyad Baba / AFP)
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Israeli Fire Kills Five in Gaza and the West Bank, Medics Say

 Election campaign banners showing candidates for the upcoming municipal elections hang on a building in Deir el-Balah in the central Gaza Strip on April 21, 2026.  (Photo by Eyad Baba / AFP)
Election campaign banners showing candidates for the upcoming municipal elections hang on a building in Deir el-Balah in the central Gaza Strip on April 21, 2026. (Photo by Eyad Baba / AFP)

Israeli airstrikes killed at least four Palestinians in Gaza on Thursday, while soldiers shot and killed a 15-year-old child during an army raid in the Israeli-occupied West Bank, Palestinian health officials said.

One person was killed in a strike in southern Gaza's Khan Younis in which several others were wounded, local medics said. Israel's military said it had targeted militants transporting munitions, who it said had posed a threat to Israeli soldiers, Reuters reported.

Three others, including a rescue worker, were killed in a separate strike in Maghazi, a Palestinian refugee camp in the Deir al Balah area in central Gaza, health officials said. Israel's military had no immediate comment on that strike.

Israel has carried out repeated strikes on Gaza since a US-brokered ceasefire came into effect in October. Both Israel and Hamas have accused each other of ceasefire violations.

There is no mechanism for enforcing the ceasefire. Four Israeli soldiers and more than 780 Palestinians have been killed in Gaza since the ceasefire started.

At Gaza City's Al Shifa Hospital, the territory's largest medical facility, relatives stood among mourners gathered to bury five people, including three children, who were killed on Wednesday in an Israeli airstrike on a northern Gaza town.

"There is no ceasefire, no truce, nothing at all," said Mohammed Baalousha, a relative of one of the victims. "There is no safety in any area."

Israel's military has not commented on the strike.

WEST BANK VIOLENCE

In the West Bank city of Nablus, health officials said Israeli forces shot and killed a teenager during an ongoing raid in the city.

The health ministry said Israeli settlers shot and killed a 25-year-old Palestinian man in Deir Dibwan town near Ramallah a day ago, in the latest in what human rights groups have described as a surge in violence against Palestinians waged by Israeli settlers and soldiers.

The Israeli military did not immediately comment on either incident. The Palestinian health ministry said at least 15 people had been killed by Israeli settlers' attacks so far this year.


Disputes Over Quotas Stall Iraq Government Talks

A handout image released by the Iraqi Parliament Media Office on April 11, 2026, shows Iraqi members of parliament attending a session to elect a new president, in Baghdad. (Photo by IRAQ PARLIAMENT MEDIA OFFICE / AFP)
A handout image released by the Iraqi Parliament Media Office on April 11, 2026, shows Iraqi members of parliament attending a session to elect a new president, in Baghdad. (Photo by IRAQ PARLIAMENT MEDIA OFFICE / AFP)
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Disputes Over Quotas Stall Iraq Government Talks

A handout image released by the Iraqi Parliament Media Office on April 11, 2026, shows Iraqi members of parliament attending a session to elect a new president, in Baghdad. (Photo by IRAQ PARLIAMENT MEDIA OFFICE / AFP)
A handout image released by the Iraqi Parliament Media Office on April 11, 2026, shows Iraqi members of parliament attending a session to elect a new president, in Baghdad. (Photo by IRAQ PARLIAMENT MEDIA OFFICE / AFP)

Rivalries within Iraq’s Shiite Coordination Framework have led to a political deadlock over naming a new prime minister, as internal disagreements persist over both the selection mechanism and the division of ministerial posts among the bloc’s factions.

According to sources, a meeting of Coordination Framework leaders - postponed several times in recent days - will focus on finding a solution that reconciles two approaches: one based on the “electoral weight” of member blocs, and the other on “political consensus” to choose a compromise candidate acceptable to all parties.

The bloc has failed to agree on a nominee during two previous meetings after votes between two leading candidates ended in a tie, deepening divisions and delaying a decision. The upcoming session is seen as potentially decisive, though another postponement remains possible if differences persist.

An Iraqi political source said a decision on the prime minister could come within hours as the constitutional deadline approaches.

“I expect the matter to be settled one way or another, because next Saturday marks the final deadline, and continued delay is already having a negative impact even among their own base,” the source said.

The source added that if the alliance adopts the criterion of electoral weight, Ihsan al-Awadi, the candidate backed by Prime Minister Mohammed Shia al-Sudani, would have the strongest chances. However, if the decision remains confined to the bloc’s leadership, the contest would stay within a pool of 12 votes, with the balance possibly tipping in favor of Bassem al-Badri.

The dispute extends beyond the selection mechanism to include internal bargaining over the distribution of ministries and sovereign portfolios. Some factions have tied their support for any candidate to the size of their share in the next government, further complicating negotiations.

Two prominent candidates have emerged with nearly equal backing within the Coordination Framework, resulting in a deadlock and reviving the option of a compromise candidate if neither consensus nor a majority decision can be reached.

The Coordination Framework, formed after the most recent elections, includes several major Shiite forces, among them alliances led by former prime ministers Nouri al-Maliki and Haider al-Abadi, as well as the bloc of current Prime Minister Mohammed Shia al-Sudani, who is heading a caretaker government. Political pressure is mounting as the constitutional deadline nears for the president to designate a new prime minister.

The election of President Nizar Amidi has triggered the formal government formation process, with a constitutional deadline set to expire on April 26, placing political forces under pressure to avoid a return to prolonged deadlock.

With complications persisting, there are many scenarios, including a last-minute agreement, further delay, or a shift toward a compromise candidate. The standoff underscores fragile cohesion within the Shiite camp and a widening gap between electoral calculations and the demands of political consensus.


Fallout from Iran War Casts Shadow over Egypt’s New Budget

Egypt’s House of Representatives being briefed on the government’s outlook on the state budget (House of Representatives)
Egypt’s House of Representatives being briefed on the government’s outlook on the state budget (House of Representatives)
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Fallout from Iran War Casts Shadow over Egypt’s New Budget

Egypt’s House of Representatives being briefed on the government’s outlook on the state budget (House of Representatives)
Egypt’s House of Representatives being briefed on the government’s outlook on the state budget (House of Representatives)

The economic fallout from the Iran war has cast a shadow over Egypt’s new state budget, Finance Minister Ahmed Kouchouk told parliament on Wednesday, as he presented the draft before it was referred to specialized committees for discussion, with the government pledging swift amendments “to enhance its ability to deal with current and potential risks.”

Kouchouk’s statement came a day after Prime Minister Mostafa Madbouly addressed the House of Representatives, focusing on the damage caused by the conflict and ways to manage its repercussions.

He said the government was treating the current regional escalation as a “prolonged crisis,” whose end is difficult to predict given the complexity and overlap of regional and international dynamics, and suggested its economic effects could last through the end of the year.

During the presentation of the 2026-2027 fiscal year budget, 600 billion Egyptian pounds ($11.5 billion) were allocated for energy subsidies, including electricity support, which rose by 39%, according to the finance minister.

A total of 832.3 billion pounds was earmarked for social protection - a 12% annual increase - to support the most vulnerable groups, alongside 90 billion pounds set aside for programs to support economic activity. (The dollar is equivalent to about 52 Egyptian pounds.)

The minister said spending priorities focus on healthcare, education, social protection, and support for production and exports, alongside flexible precautionary policies to address potential challenges and strike a balance between fiscal discipline and economic stimulus. He pointed to “uncertainty in markets and disruptions in trade and supply chains,” describing them as “major challenges and pressures on economies, especially emerging markets.”

Data presented to lawmakers also indicated a 3% reduction in fuel consumption and a 15% cut in electricity and lighting use in response to recent developments. Regarding national projects, the government decided to postpone or slow the implementation of “slow-moving” or fuel-intensive projects on an exceptional basis for three months, renewable if needed.

According to the minister, the government has also decided to limit spending in the final quarter of the current fiscal year to essential expenditures only, including wages, salaries, pensions, and the needs of the health, electricity and petroleum sectors.

Egypt’s budget has been affected by rising costs of securing energy supplies, prompting the government to increase subsidy allocations in the new budget while relying on consumption rationalization and hedging against future developments in the conflict, said economist Mohieddin Abdel Salam. He noted that Egypt has been significantly impacted by rising oil and gas prices.

Figures presented by the finance minister showed the government has mobilized about 135.6 billion pounds since early March to ensure the stability of vital sectors. This includes 90.6 billion pounds for the energy sector, 30 billion pounds to secure essential commodities, subsidized goods, wheat and sugar, and 15 billion pounds to support the healthcare sector and provide medicines.

Abdel Salam told Asharq Al-Awsat that uncertainty remains over Egypt’s ability to attract foreign investment, as some investors are wary of committing funds in the region due to war-related risks. However, he said Egypt could still benefit from opportunities if it manages to distance itself from ongoing tensions.

He noted that these conditions have led to tighter fiscal policies, reflected in holding interest rates steady rather than cutting them, as well as austerity measures and reduced spending by government institutions.

This can be seen in the new budget, he added, which focuses on vital sectors and strengthening social support, particularly amid declining revenues from the Suez Canal and tourism, and potential impacts on remittances from Egyptians abroad.