US conditions Gaza reconstruction on Hamas disarmament
Analysis based on 6 articles · First reported Aug 17, 2026 · Last updated Aug 18, 2026
The ultimatum prolongs uncertainty over Gaza's reconstruction, delaying billions in potential construction and infrastructure contracts. It also sustains regional geopolitical risk, supporting defense spending and keeping oil and shipping risk premia elevated.
US peace envoy Jared Kushner, after rare meetings with Hamas officials in Cairo and Israeli Prime Minister Benjamin Netanyahu, stated that the US will not allow the reconstruction of Gaza until the enclave is fully demilitarized. Hamas reaffirmed support for Trump's peace plan and committed to giving up weapons, but Netanyahu rejected the plan, insisting on full disarmament before any Israeli withdrawal. Hamas demands Israeli withdrawal and an end to aggression as a prerequisite for disarmament. The dispute over sequencing remains a central obstacle. The UN reports over 73,000 killed and 92% of housing destroyed in Gaza since October 2023, with accusations of domicide. Trump's earlier 'Riviera of the Middle East' plan was rejected by Arab states, the EU, and the UN.
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