Trump Proposes Gaza Takeover, Netanyahu Forecasts Israel-Saudi Peace Deal

Washington, D.C. - At a White House press conference, President Donald Trump suggested the United States collaborate with Saudi Arabia to "take over" and redevelop the Gaza Strip. Israeli Prime Minister Benjamin Netanyahu expressed optimism about the prospects of a peace agreement between the oil-rich kingdom and Israel.

Trump's remarks elicited swift reactions, with some White House aides downplaying their significance as mere brainstorming. However, the proposal sparked criticism from regional leaders and counterparts in Europe.

Saudi Arabia promptly reiterated its demand for an independent Palestinian state as a condition for any normalization agreement. Crown Prince Mohammed bin Salman (MBS) rejected any infringement on Palestinian rights or attempts to displace them.

Trump's proposal to relocate 2 million Palestinians and the suggestion of deploying US troops have raised concerns. Critics argue these measures could constitute ethnic cleansing.

MBS views a comprehensive peace deal as a priority, while Saudi Arabia's young population has become increasingly sympathetic to the Palestinian cause. A move by the US to relocate Palestinians could destabilize the region.

"Trump believes his inflammatory statements contribute to his negotiation strategy," said Bader Al Saif, an associate fellow at Chatham House. "However, the Israel-Palestine conflict presents unique challenges."

MBS knows that a deal without concrete steps towards Palestinian statehood would face opposition domestically and regionally. Calling Israel's actions in Gaza a "genocide" in November, he has repeatedly emphasized the need for a two-state solution.

In a phone call with MBS, Jordan's King Abdullah II welcomed Saudi Arabia's stance on Palestinian rights. Jordan's royal court condemned any attempts to annex lands and displace Palestinians.

Meanwhile, Netanyahu's government has maintained its opposition to Palestinian statehood.

"Given the importance of the Palestinian issue to the Saudi public and the devastation caused by Israel in Gaza and the West Bank, Riyadh is likely to proceed cautiously," said Anna Jacobs, a non-resident fellow at the Arab Gulf States Institute.

Observers speculate MBS may accept a scaled-back version of statehood if the US meets his demands for defense, security, investment, and technology.

"Most of the heavy lifting for normalization is complete," said then-Secretary of State Antony Blinken in a speech last month. This includes proposals to designate Riyadh as a treaty ally, enhance military cooperation, and support a civil-nuclear program.

Saudi officials have emphasized the need for steps towards statehood during meetings in Washington this week. They believe investment driven by normalization will only benefit the kingdom with the establishment of peace.

"We cannot normalize with Israel without a solution for the Palestinians," said Saudi Ambassador to the UK Khalid bin Bandar al Saud. "We have red lines."

Netanyahu became the first foreign leader to meet with Trump in his second term, amidst concerns over the fragile ceasefire in Gaza. Trump expressed confidence that the Abraham Accords would expand to include Saudi Arabia and others.

MBS first broached the idea of a normalization pact in late 2022. The Biden administration nearly sealed the agreement before a Hamas attack on Israel in October 2023 triggered the Gaza conflict.

As normalization discussions resume, Netanyahu's far-right coalition partners advocate for a resumption of war and the expansion of military operations in the West Bank.

MBS is concerned about the potential instability among Saudi Arabia's youth, who have expressed strong support for Palestine amid the war.

Regional analysts warn that the Palestinian issue could challenge MBS's ambitious Vision 2030 economic plan.

Riyadh has arrested individuals criticizing Israel's actions in Gaza, amidst fears of regional unrest. Tehran also remains a factor, as MBS seeks détente with the country.

"The danger to Saudi Arabia is real," said Hassan Abu Haniyeh, an expert on militant Islam. "This is a decision that requires careful consideration."