Beyond the immediate goals of a ceasefire and hostage release, the U.S. peace proposal for Gaza carries immense economic stakes, hinging on a multi-billion dollar international effort to rebuild the shattered territory. This massive reconstruction plan is a key incentive that President Donald Trump will highlight in his Monday meeting with Prime Minister Benjamin Netanyahu.
The nearly two-year war has left the Gaza Strip in ruins. Infrastructure, including hospitals, schools, and homes, has been decimated. The economy has completely collapsed, and the majority of the population is dependent on aid. The cost of rebuilding is estimated to be in the tens of billions of dollars.
The U.S. plan addresses this by envisioning a major international fund, primarily financed by wealthy Gulf nations. This fund would be managed by the proposed “Gaza International Transitional Authority” and would be tasked with the monumental project of reconstruction. This economic revitalization is seen as crucial for ensuring long-term stability and preventing a return to conflict.
This “Marshall Plan” for Gaza is a powerful piece of leverage for President Trump. He can argue that a peaceful and prosperous Gaza is in Israel’s long-term security interest, as it would reduce the appeal of extremism. A stable economy next door is far preferable to a cauldron of poverty and despair.
However, for Prime Minister Netanyahu, the question will be one of control and security. He will be wary of any plan that allows for the flow of vast sums of money and materials into Gaza without airtight guarantees that they will not be diverted by militant groups. The economic promise of the deal is therefore inextricably linked to its security provisions.