Crowds filled the streets of Tel Aviv last July, chanting and waving signs as they demanded the immediate release of hostages still held in Gaza following the October 7, 2023 Hamas attack on Israel. The pain of that day — when militants stormed across the border, killing around 1,200 people and taking dozens hostage — still shapes Israeli politics and the country’s ongoing military campaign nearly a year later.

Now, the Trump administration is trying to chart a path out of the bloodshed. According to a source familiar with the effort, Washington has drafted a sweeping 21-point Gaza peace plan that seeks to end the war, secure the release of all remaining hostages, and lay the foundation for governance in the territory once the fighting stops.

The proposal — which has been shared with key Arab states — calls for Hamas to release all hostages within 48 hours of an agreement being signed. In exchange, Israel would commit to a phased withdrawal of its troops from Gaza. The plan explicitly rules out any future political role for Hamas, setting out a two-tiered system of interim governance: an international oversight body and a Palestinian committee.

Notably, the proposal does not set a firm timetable for transferring power to the Palestinian Authority (PA), which currently exercises limited self-rule in the West Bank but faces deep mistrust from Israel. The Israeli government has repeatedly stated it will not allow the PA to govern Gaza, leaving questions over who might ultimately run the enclave unresolved.

The plan also stops short of formally endorsing a Palestinian state, but it acknowledges Palestinian statehood as a legitimate aspiration — a detail that could create friction with Israeli Prime Minister Benjamin Netanyahu, whose far-right coalition partners fiercely oppose any such recognition. Speaking at the United Nations General Assembly on Friday, Netanyahu doubled down on his rejection, declaring that granting statehood would be akin to “giving al-Qaeda a state one mile from New York City after September 11.”

The Trump administration’s plan, however, does contain significant commitments designed to reassure both sides. It rules out forced displacement of Gaza’s population — a major concern amid accusations that Israel’s campaign is pushing civilians out of their homes on a mass scale. More than 700,000 Palestinians have fled Gaza City in recent weeks, according to the Israeli military, as its forces tightened their control over the territory’s largest urban center.

Trump Pushes for Breakthrough

President Donald Trump struck an optimistic tone on Friday, telling reporters that negotiators were “very close” to a deal. He described the last four days of discussions with regional leaders as “intense but inspired,” adding that talks would continue “for as long as necessary in order to get a Successfully Completed Agreement.”

The U.S. president held what he called his “most important meeting” of the UN General Assembly week with leaders from Qatar, Saudi Arabia, Egypt, Indonesia, Turkey, and Pakistan. Special Envoy Steve Witkoff confirmed Wednesday that the 21-point plan had been formally presented to Arab states, describing the mood as cautiously hopeful.

According to the source, the plan also includes a commitment that Israel will not target Qatar — a critical mediator with ties to Hamas — following a series of Israeli airstrikes near Doha earlier this month that targeted Hamas leaders. It remains unclear, however, whether Hamas itself has been formally presented with the plan. If it has, the group’s leadership in Doha has yet to signal its response. A senior Hamas official told CNN Saturday that they had not received any new ceasefire offer.

High Stakes for Netanyahu

Any agreement will test Netanyahu’s fragile governing coalition. Several far-right ministers have warned they would quit the government if the war ends before Hamas is fully destroyed, potentially triggering new elections. Others have pushed for the permanent Israeli takeover of Gaza and even the annexation of parts of the occupied West Bank.

Despite this pressure, Netanyahu is scheduled to meet Trump at the White House on Monday, a meeting expected to focus on whether Israel can accept even a partial implementation of the proposal without fracturing its government.

A Rare Opening for Diplomacy

For Washington, the deal represents an attempt to balance Israel’s security needs with mounting global pressure to address the worsening humanitarian crisis in Gaza. If successful, it could mark the first concrete step toward ending a conflict that has left tens of thousands of Palestinians dead, devastated Gaza’s infrastructure, and drawn international condemnation.

Trump has framed the plan as a chance to secure both justice for the October 7 victims and a long-term vision for peace. “All of the countries within the region are involved, Hamas is very much aware of these discussions, and Israel has been informed at all levels,” he said in a social media post. He emphasized that the ultimate goal was to bring the hostages home and achieve what he described in capital letters as a “PERMANENT AND LONGLASTING PEACE.”

Whether this ambitious plan can survive the political realities on the ground remains uncertain. For now, Israeli air and ground operations continue at full force, and negotiations are ongoing behind the scenes. But with regional players engaged and Washington pushing hard for a breakthrough, there may be a rare diplomatic opening to bring one of the deadliest phases of the Israeli-Palestinian conflict to an end.