Inside Historic Gaza Peace Deal Trump Sealed with Arab Leaders [Takeaways]

U.S. President Donald Trump joined Arab leaders in Egypt on Monday to finalize what is being hailed as the most significant Gaza peace deal in nearly two decades.

The agreement, signed in the Egyptian city of Sharm El-Sheikh, brings together regional powers and sets the stage for a fragile but hopeful new phase in Middle East relations.

“The rebuilding begins,” says Trump

Standing beside Egyptian President Abdel Fattah al-Sisi, Qatar’s Emir Sheikh Tamim bin Hamad Al Thani, and Turkish President Recep Tayyip Erdoğan, Trump declared the Gaza peace deal a “turning point for peace in our time.”

“The rebuilding begins. It may be easier than the war itself,” Trump told delegates in a televised address. “The world has watched long enough. Today, we take a step that few believed possible, peace, security, and dignity for both Israelis and Palestinians.”

The agreement — brokered with mediation from Egypt, Qatar, and Turkey — formalizes a permanent ceasefire between Israel and Hamas, alongside a plan for phased reconstruction and political transition in Gaza.

However, while the Palestinian Authority President, Mahmoud Abbas was at the Gaza Peace Summit in Egypt, Israeli Prime Minister, Benjamin Netanyahu was absent, raising some fears about the peace process itself as it appears there was no binding agreement signed by the two rival governments yet.

Before flying to Egypt for the summit, Trump on Monday addressed the Israeli Parliament, otherwise known as the Knesset, declaring that the “long, painful nightmare is finally over,” Pan-Atlantic Kompass had earlier reported.

Deal Highlights: Ceasefire, Hostage Exchange, and Reconstruction

According to the joint communiqué, Israel and Hamas have agreed to implement the first phase of a long-term truce that includes:

• Total ceasefire and withdrawal of Israeli forces from central Gaza within 30 days.
• Hostage and prisoner exchange: All 20 living Israeli hostages released in exchange for thousands of Palestinian detainees.
• Creation of a transitional governing council in Gaza, supported by Arab League nations and supervised by a multinational stabilization force.
• $53 billion reconstruction fund, led by Gulf states and international donors, to rebuild infrastructure, hospitals, and housing.

A senior Egyptian diplomat reportedly said the deal “marks the first time both Israel and Hamas have signed a binding, written framework since the start of the 2023 war.”

“It’s not perfect,” he said, “but for the first time in years, both sides have something to lose by returning to fighting.”

Arab Leaders Unite Behind Ceasefire Framework

President al-Sisi, who hosted the summit, called the peace deal a “last chance for stability in the region.”

“Egypt believes peace must come with justice,” al-Sisi said. “We reject any plan that displaces Palestinians or denies their right to their homeland. This agreement is about rebuilding Gaza, not resettling it elsewhere.”

Qatar’s Emir Sheikh Tamim described the accord as “a step toward ending the endless cycle of bloodshed.”

“This region cannot afford another lost generation,” he said, pledging Doha’s commitment to financing humanitarian recovery.

Turkey’s President Erdoğan, once a fierce critic of Israeli policy, praised the outcome as “a necessary reset in regional cooperation” and called on all parties “to move beyond revenge and toward reconstruction.”

Washington’s Role and Trump’s Political Calculus

President Trump re-entered the diplomatic spotlight by spearheading what aides called “The Cairo Compact” — a revival of his earlier Abraham Accords initiative in his first term, now extended to include Gaza’s post-war reconstruction.

According to Time Magazine, Trump’s re-emergence was made possible through months of quiet back-channel coordination with Arab capitals and Israel’s leadership.

At the Knesset, the Israeli Parliament on Monday, Trump told lawmakers “We have achieved what they said could never be done — an agreement that ends war and begins renewal.”

Analysts say the move bolsters Trump’s image as a global deal-maker ahead of the U.S. 2026 elections, though skeptics warn the ceasefire could collapse if hardline factions on either side resist implementation.

Israel Confirms “First Phase” Completion

Israeli Prime Minister Benjamin Netanyahu confirmed the first stage of the ceasefire and thanked “international partners” for mediating the exchange.

“This deal secures our hostages, strengthens Israel’s security, and opens a path to lasting calm,” Netanyahu said. “Our commitment remains — to peace through strength.”

The Israeli Defense Forces began a partial withdrawal from northern Gaza over the weekend, with UN monitors expected to verify compliance.

Mixed Reactions Across the Arab World

In Amman, Jordan’s foreign minister Ayman Safadi welcomed the accord but urged “clear guarantees” for Palestinian self-determination.

“Without a genuine path toward a two-state solution, this peace will remain temporary,” Safadi said.

In Riyadh, a Saudi Foreign Ministry statement praised the deal’s humanitarian provisions but insisted that “true peace depends on ending occupation and recognizing Palestinian sovereignty.”

Meanwhile, protests erupted in parts of the West Bank and Beirut, where demonstrators accused Arab leaders of “conceding too much” to U.S. influence.

Challenges Ahead

Even with hostages freed and guns silent, experts caution that implementation risks remain high.

• Hamas’s future role in Gaza’s governance remains unclear.
• Israel insists on retaining limited security control in border areas.
• The rebuilding of Gaza requires rapid disbursement of pledged funds, which is historically a weak point in prior peace efforts.

Middle East analyst Tareq al-Husseini told Reuters, “This agreement could reshape the region — or unravel within months. Everything depends on political will and sustained international oversight.”

Global Reactions: Cautious Optimism

UN Secretary-General António Guterres called the deal “an overdue step toward restoring humanity.”

“This must be the start of a just peace — not merely the end of a violent chapter,” he said.

European Union foreign policy chief Josep Borrell said the EU “welcomes the leadership of Egypt, Qatar, and the United States,” adding that Brussels would contribute €2 billion in reconstruction aid.

As fireworks lit up the Red Sea skyline after the signing ceremony, Trump waved to cheering delegates, calling the agreement “the deal of the century — again.”

But beneath the celebration, diplomats acknowledged the immense challenges ahead.

“History will judge this moment not by the signatures,” said a senior UN envoy, “but by whether Gaza can finally live without war.”

Quick Key Facts on Gaza Peace Deal

Pan-Atlantic Kompass