The development marks a critical milestone in the drawn-out talks for a Gaza ceasefire and hostage release agreement, with Israeli and Hamas officials cautiously optimistic that a deal could be finalized within one to two weeks. According to sources, a 60-day ceasefire is being negotiated during which Hamas would release hostages, and initial rebuilding of civilian infrastructure would begin.
A key breakthrough emerged when Israel signaled readiness to permit the flow of international reconstruction funds, on the condition that Qatar would not be the sole financier. Israeli officials are pushing for a multilateral funding framework that includes contributions from several Arab and Western nations.
“For Hamas, the reconstruction effort is not just material—it’s symbolic,” said a senior Israeli official, speaking anonymously. “They view it as a guarantee of Israeli seriousness in ending hostilities.” The same official warned, however, that if Hamas fails to disarm during the proposed ceasefire, “we’ll advance military operations.”
The funding component has become a core issue in talks, raised directly during meetings in Washington between a Qatari delegation and U.S. officials, coinciding with Prime Minister Benjamin Netanyahu’s visit to Washington, D.C.
However, key regional powers—including Saudi Arabia and the United Arab Emirates—have reportedly withheld reconstruction pledges pending a clear Israeli commitment to ending the war.
Another sticking point in the negotiations is the Morag Corridor—a strategic strip between Khan Younis and Rafah in southern Gaza. While Israel has proposed a limited military presence in the corridor, Hamas remains resistant. The corridor, now under IDF control, is central to Israeli plans to build a so-called “humanitarian city” designed to separate civilians from Hamas infrastructure and house displaced residents in portable shelters.
Israel insists on retaining oversight of this area post-ceasefire, particularly as thousands of Palestinians are expected to return to Rafah amid the widespread destruction of its infrastructure. Temporary refugee facilities are already being planned in anticipation.
Despite ongoing complexities, the inclusion of reconstruction funding—particularly involving nations beyond Qatar—signals that both parties may be inching toward a broader resolution. While no agreement has yet been finalized, mediators say the next two weeks could prove decisive.
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