Trump Administration Softens Gaza Takeover Proposal As Middle East Allies Reject Plan

The Trump administration on Wednesday dialed back elements of its controversial proposal to assume control over Gaza, following immediate global backlash.

Officials are now clarifying that President Donald Trump's suggestion to relocate Palestinians and redevelop Gaza was not a commitment to deploying U.S. troops or spending American taxpayer dollars. The New York Times reports that key figures within the administration are emphasizing a more limited role in the plan.

What Happened: After unveiling the proposal during Israeli Prime Minister Benjamin Netanyahu's White House visit, Trump's vision for a transformed Gaza ignited international opposition. The plan, which involved relocating up to two million Palestinians and redeveloping the area into a U.S.-controlled territory, was swiftly rejected by Middle Eastern leaders and global institutions, citing violations of international law.

Also Read: Bill Ackman Sends UnitedHealth Stock Lower With Deleted Tweet: Here’s What He Said

Secretary of State Marco Rubio later stated that Trump was merely suggesting reconstruction efforts rather than permanent U.S. governance over Gaza, The Times reported.

Special envoy Steve Witkoff echoed this sentiment, assuring Republican senators that Trump had no intention of putting "troops on the ground" or allocating federal funds to the effort.

Saudi Arabia issued a statement before dawn, rejecting any forced displacement of Palestinians and reaffirming that diplomatic ties with Israel remain conditional on an independent Palestinian state. Egypt and Jordan also condemned any plans to remove Gaza's population, with Jordan's King Abdullah II reaffirming his opposition in a meeting with Palestinian leadership.

Why It Matters: Trump's Gaza remarks disrupted diplomatic efforts and injected uncertainty into U.S. foreign policy in the Middle East. Beyond the immediate regional implications, market observers linked the proposal to rising demand for safe-haven assets.

Palestinians in Gaza expressed both outrage and uncertainty, with some rejecting forced relocation outright and others citing the dire conditions caused by prolonged conflict as a reason to consider leaving. Hamas outright rejected the proposal, warning that any forced relocation would escalate tensions in a region, according to the NY Times.

Meanwhile, Gold prices soared to a record $2,849.05 per ounce as investors responded to geopolitical instability and renewed U.S.-China tensions. Economist Peter Schiff framed the surge as a contrarian signal, arguing that broader retail interest in gold is yet to come.

Read Next:

• Oil Drops As Traders Doubt Iran Sanctions: ‘Trump Bark Is Far Worse Than His Bite,’ Analyst Says

Photo: Chip Somodevilla/Shutterstock.com