NextFin News - Reports from the Gaza Strip indicate that Hamas has successfully re-established civil and security control across the majority of the enclave, just as a high-stakes international diplomatic summit led by U.S. President Trump opens in Washington. According to the BBC, local activists and residents report that Hamas "police" and security units have returned to the streets in cities across Gaza, enforcing order, collecting taxes, and targeting individuals accused of collaborating with Israel. Mohammed Diab, a Gaza-based activist, stated that the group now exerts authority in more than 90 percent of the areas where it maintains a presence, effectively filling the power vacuum left by the cessation of major hostilities.
This resurgence comes at a critical juncture for regional diplomacy. On Thursday, February 19, 2026, U.S. President Trump convened the inaugural meeting of the "Board of Peace" at the newly renamed Donald J. Trump U.S. Institute of Peace. The summit, attended by representatives from approximately 60 countries, aims to finalize a framework for the reconstruction and long-term stability of Gaza. However, the reality on the ground—where Hamas is aggressively reasserting its administrative grip—threatens to undermine the core tenets of the U.S. peace plan. While U.S. President Trump has proposed a $5 billion humanitarian fund and the deployment of an International Stabilization Force (ISF), Hamas leader Osama Hamdan recently reiterated that the organization will not lay down its arms as long as Israeli forces remain in any part of the territory.
The return of Hamas’s administrative machinery is most visible in its fiscal and judicial operations. Residents have complained to international observers about the resumption of strict tax collection on goods and merchants. According to reports cited by the BBC, Hamas officials are demanding payments as high as 700 shekels ($225) from local traders, using threats of confiscation or detention to ensure compliance. This revenue stream is vital for the group to sustain its cadres and maintain its social welfare networks, which have historically been the bedrock of its political legitimacy. By re-establishing these systems, Hamas is signaling that it remains the de facto sovereign power in Gaza, regardless of the diplomatic maneuvers occurring in Washington.
The persistence of Hamas as a governing entity highlights a fundamental flaw in the current transition strategy. The second phase of the peace plan envisioned by U.S. President Trump relies on the total disarmament of non-state actors and the introduction of the ISF to secure borders and protect civilians. Yet, as of February 2026, only Indonesia has publicly committed troops—approximately 2,000 personnel—and even these are not scheduled for deployment until April. This delay has allowed Hamas to reorganize its internal security apparatus. Israeli Prime Minister Benjamin Netanyahu has responded by maintaining that the Israel Defense Forces (IDF) will not withdraw until Hamas is completely dismantled, creating a circular security dilemma that prevents the very stability the Board of Peace seeks to foster.
From a geopolitical perspective, the "Board of Peace" itself faces significant internal friction. The charter of the board, which grants U.S. President Trump sweeping powers as Inaugural Chairman, including veto authority over all decisions, has led several G7 and European nations to keep their distance. According to German news outlet DW, while leaders like Argentine President Javier Milei and Hungarian Prime Minister Viktor Orbán have embraced the initiative, many traditional allies fear the board operates outside the multilateral framework of the United Nations. Furthermore, the inclusion of Turkish Foreign Minister Hakan Fidan has drawn sharp criticism from Jerusalem, as Israel views Turkey as a primary benefactor of Hamas. This diplomatic fragmentation limits the board's ability to exert the unified pressure necessary to force Hamas into a genuine disarmament process.
Looking ahead, the trend suggests a deepening of the "frozen conflict" dynamic in Gaza. If Hamas continues to consolidate its internal control while the international community remains divided over the governance of the ISF, the enclave will likely remain a bifurcated territory: militarily contested by the IDF in strategic corridors but administratively run by Hamas in urban centers. The $5 billion pledged by U.S. President Trump for reconstruction is unlikely to flow into a territory where the primary governing body is still designated as a terrorist organization by major donors. Without a breakthrough that addresses the group's refusal to disarm, the ambitious "New Gaza" projects proposed by U.S. negotiators will remain theoretical, while the local population continues to navigate a landscape of high taxes, strict social control, and the constant threat of renewed large-scale conflict.
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