Gaza Peace Plan Stalled: Hostage Crisis and Political Hurdles Stall Trump’s Proposal

Gaza remains mired in uncertainty as the second stage of former US President Donald Trump’s peace plan struggles to advance. Two months into a US-brokered ceasefire, reconstruction has barely begun, families remain displaced, and heavy winter storms have caused flooding and structural collapses, putting over 800,000 Gazans at risk, according to the UN.

Residents like Ghadir al-Adham live in makeshift shelters, struggling to protect their children from rain and cold. “Here we are, living a life of humiliation. We want caravans. We want our homes rebuilt. We long for concrete to keep us warm,” she told the BBC.

The next phase of Trump’s plan is stalled over Israel’s insistence that Hamas return all hostages, living and dead. Israel’s last missing hostage, Ran Gvili, a 24-year-old police officer captured during the 7 October Hamas attacks, has yet to be found. His parents say Hamas may be keeping him as leverage in negotiations. Israel’s Prime Minister, Benjamin Netanyahu, has said no progress will be made in the next stage until Ran’s fate is resolved.

Both Israel and Hamas face major concessions in the upcoming phase: Hamas would need to hand over weapons and political control, while Israel would rely on an international stabilisation force to manage security. Retired Israeli General Israel Ziv noted that both sides have incentives to delay. “Hamas doesn’t want to lose control, and the Israeli side for political reasons also prefer to stay in Gaza,” he said.

Trump has expressed urgency in moving the plan forward, announcing the creation of a Board of Peace for Gaza to oversee reconstruction and governance. Israel is reportedly beginning rubble clearance and preparing temporary housing in Rafah for Gazans willing to enter Israeli-controlled areas under security checks.

However, many Gazans oppose living under Israeli oversight, raising doubts about the second stage of the peace plan. Without agreement on disarming Hamas and securing the territory, foreign involvement and meaningful reconstruction remain stalled, leaving Gaza divided and its people in limbo.