Israeli Prime Minister Benjamin Netanyahu has raised the possibility of partially annexing the Gaza Strip, should ongoing hostage negotiations with Hamas collapse. The proposal was discussed in a small cabinet meeting earlier this week, reported The Jerusalem Post. “It was raised as a serious matter and was debated,” a source told the newspaper, describing the conversation as more than rhetorical posturing.
The latest escalation comes against the backdrop of growing frustration within Israel’s leadership over the lack of progress in indirect talks with Hamas, which resumed recently in Cairo. A senior Israeli official said that if talks remain stalled, Israel would have “no choice” but to escalate militarily. Yet, annexation represents a shift from short-term battlefield strategy to long-term political reconfiguration — a shift that is already producing ripple effects both within Israel and internationally.
Adding to the controversy, Israeli military sources confirmed that top IDF officials were excluded from the cabinet-level discussions on annexation. It shows an emerging gap between civilian leadership and military command over the direction of the war in Gaza. Similarly, Kan and Channel 13 reported on July 30 that Israel has warned Hamas through mediators that failure to accept the current deal on the table will trigger punitive actions, including the seizure of territory along Gaza’s northern and eastern peripheries.
Support for such measures is growing among right-wing figures in Netanyahu’s coalition. Yesterday, Ze’ev Elkin, a member of Gideon Sa’ar’s New Hope party and a cabinet minister, openly endorsed the annexation threat. He accused Hamas of deliberately prolonging talks to gain further concessions. “The most painful thing for our enemy is losing lands,” he said. “A clarification to Hamas that the moment they play games with us, they will lose land that they will never get back would be a significant pressure tool.”
Elkin’s remarks coincided with a push by 22 cabinet ministers and coalition lawmakers, including National Security Minister Itamar Ben Gvir and Communications Minister Shlomo Karhi, who signed a letter urging Defence Minister Yoav Gallant to approve a settler delegation’s visit to northern Gaza. The delegation, linked to the ultranationalist Nachala movement, aims to scout locations for future Jewish settlements. Nachala, whose leader Daniella Weiss has been sanctioned by Canada and the UK, has long advocated settlement expansion and has organised marches near Gaza’s border to promote its goals. Several of its cadres are reportedly prepared to move in if given the green light.
This growing appetite for annexation and settlement in Gaza appears to be both a negotiating tactic and a reflection of the ideological orientation of key figures in the current Israeli cabinet. Netanyahu, for now, is said to be holding back until two developments unfold: a possible change in Hamas’s negotiating position, and meetings in Washington where Strategic Affairs Minister Ron Dermer and National Security Advisor Tzachi Hanegbi would meet senior Trump administration officials.
At the same time, the humanitarian toll in Gaza continues to rise. The prime minister’s office had acknowledged the dire situation but insisted that Israel is facilitating the entry of large quantities of aid, including food, water, and medicine. However, Israeli human rights group B’Tselem has accused the government of executing a “coordinated action to intentionally destroy Palestinian society,” calling it evidence of a “developing genocidal regime.”
Diplomatic efforts remain fragile. Talks in Cairo are progressing slowly, after Israeli and US envoys pulled out of negotiations in Qatar last week, citing frustration with Hamas’s evolving demands. According to Israeli media, Jerusalem has since handed over a document outlining its red lines. These include refusing to withdraw from the Philadelphi Corridor along the Gaza-Egypt border, keeping the Rafah Crossing closed, and rejecting Hamas’s proposal for a broad prisoner release, which Israel claims would leave it with little leverage for securing the final batch of hostages.
Pressure on Hamas is also coming from the Arab world. For the first time, Qatar, Saudi Arabia, and Egypt have jointly called for Hamas to disarm and relinquish control of Gaza. The statement, issued at the UN conference co-hosted by Saudi Arabia and France, was backed by the entire Arab League, the EU, and 17 other nations. The declaration condemned the Hamas-led October 2023 attack and proposed an international stabilisation mission in Gaza under UN oversight and with Palestinian Authority approval.
The United States is cautiously re-engaging. White House envoy Steve Witkoff returns to Israel this week for the first time in nearly three months, signalling renewed interest from Washington. Witkoff, who previously said he would not return without signs of a breakthrough, may also travel to Gaza to inspect humanitarian aid centres operated by the Gaza Humanitarian Foundation. Officials say he will later head to Qatar and Egypt, both key intermediaries in the talks. Witkoff is also expected to meet Israeli hardliners like Ben Gvir and Bezalel Smotrich, amid concerns they could torpedo a potential deal for domestic political gain.
Meanwhile, Israel faces growing diplomatic isolation. Canadian Prime Minister Mark Carney announced yesterday that Canada will recognise a Palestinian state at the United Nations General Assembly in September. Carney framed the decision as conditional on Palestinian Authority reforms, including elections, anti-corruption measures, and a commitment to demilitarisation. Still, the announcement marks a significant departure from Canada’s traditional stance of conditioning recognition on the conclusion of peace talks with Israel.
“The prospect of a Palestinian state is literally receding before our eyes,” Carney said, citing the deteriorating situation in Gaza. Canada’s move follows similar declarations from France, the UK and Malta. Ireland, Spain, Norway, and Slovenia recognised Palestinian statehood earlier this year, joining a growing bloc within the EU. However, others, including Germany and Italy, remain opposed, with Berlin insisting that recognition must come as part of a negotiated peace.
As military operations grind on and political rhetoric intensifies, the situation in Gaza has become not only a humanitarian catastrophe but a diplomatic tipping point.
