Trump says relationship is good even as Netanyahu rejects Gaza peace plan

What Happened

United States President Donald Trump on Monday downplayed Israeli Prime Minister Benjamin Netanyahu’s formal rejection of a US-led 15-point Gaza peace plan, insisting their relationship is “very good”. The plan, drafted by the US-led Board of Peace and released on July 31, was announced by Trump late last month as accepted by Hamas; it calls for phased disarmament of Hamas and other armed groups in Gaza and a concurrent Israeli troop withdrawal, to be monitored by a new Palestinian governing body. Netanyahu, under pressure from far-right cabinet members, stated on Sunday that the Israel Defense Forces “will not carry out any withdrawal until Hamas is genuinely disarmed” and that “no Palestinian state will arise as long as I am prime minister”, marking a public policy split with Washington. A Board of Peace official on Monday said the plan remains operative and that discussions with Israel continue, stressing a step-by-step verification process.

Key Actors

Why It Matters

Netanyahu’s explicit rejection deepens a public rift between the United States and Israel over how to end the Gaza war, undermining the US-led ceasefire framework. The split reflects domestic Israeli politics and far-right coalition pressures, and risks prolonging the conflict while testing Washington’s capacity to mediate and the viability of a negotiated settlement.

Watch For

Monitor bilateral US–Israel discussions over the plan’s terms; any modifications or new proposals from the Board of Peace; reactions from other mediators like Egypt and Qatar; and whether IDF operations in Gaza continue unchanged. Watch for statements from far-right Israeli ministers and any resumption of broader ceasefire negotiations in Cairo or Doha.