NextFin News - In a decisive shift that marks the end of the hostage crisis and the beginning of a new geopolitical era for the Middle East, Israeli Prime Minister Benjamin Netanyahu announced on Tuesday, January 27, 2026, that Israel will now focus exclusively on the total disarmament of Hamas and the demilitarization of the Gaza Strip. This declaration follows the repatriation of the remains of Ran Gvili, the final hostage held in the territory since the October 7, 2023, attacks. Speaking from Jerusalem, Netanyahu emphasized that no reconstruction of the devastated enclave would commence until these security objectives are met, while simultaneously rejecting any pathway toward a Palestinian state.
The announcement comes as U.S. President Trump’s administration intensifies its involvement through the newly established "Board of Peace," a governing body designed to oversee Gaza’s transition. According to Le Devoir, Netanyahu informed U.S. President Trump that the demilitarization process would occur "the easy way or the hard way," signaling a readiness to maintain military pressure if Hamas does not voluntarily surrender its arsenal and tunnel networks. This stance is reinforced by the U.S.-backed UN Security Council Resolution 2803, which authorizes an International Stabilization Force (ISF) to manage security during a transitional period through 2027.
The rejection of a Palestinian state by the Israeli leadership represents a significant hardening of policy that challenges decades of international diplomatic consensus. Netanyahu asserted that Israel would maintain security control "from the Jordan River to the sea," effectively ruling out sovereign Palestinian governance in Gaza or the West Bank. This position aligns with the broader strategy of the current U.S. administration, which has prioritized regional stability and the dismantling of terror infrastructure over the immediate pursuit of a two-state solution. According to VINnews, the return of Gvili’s remains—recovered by the IDF in a specialized operation in northern Gaza—was the final prerequisite for Israel to move into this second phase of the peace plan.
From an analytical perspective, the insistence on demilitarization before reconstruction creates a high-stakes "security-first" economic model. By withholding reconstruction funds, Israel and the U.S. are utilizing economic leverage to force a structural collapse of Hamas’s remaining military capabilities. However, this approach carries substantial risks. The historical precedent of UNIFIL in Lebanon suggests that international stabilization forces often struggle to prevent the re-arming of non-state actors. If the proposed ISF fails to secure Gaza’s borders effectively, the burden of enforcement will likely fall back on the IDF, potentially leading to a permanent Israeli military presence that further complicates regional normalization efforts.
Furthermore, the governance of Gaza under a technocratic committee supervised by the Board of Peace—chaired by U.S. President Trump—marks a radical departure from traditional occupation or self-governance models. This "Board of Peace" framework seeks to bypass the political gridlock of the Palestinian Authority while ensuring that aid distribution is not diverted to militant groups. Data from recent U.S. diplomatic briefings suggest that the reconstruction of Gaza will require an estimated $50 billion in international investment, yet this capital remains frozen, contingent upon the verifiable decommissioning of weapons. The success of this plan hinges on whether the promise of economic prosperity can outweigh the ideological resilience of militant factions.
Looking ahead, the primary challenge will be the physical verification of demilitarization. Hamas leaders, such as Khalil al-Hayya, have already publicly rejected calls to disarm, labeling their weapons a "legitimate right." This suggests that the "hard way" mentioned by Netanyahu—continued targeted military operations—is the more probable trajectory for 2026. As the Rafah crossing begins a limited reopening for humanitarian purposes under strict Israeli and U.S. oversight, the world is witnessing the implementation of a new security architecture that prioritizes the elimination of threats over the realization of Palestinian national aspirations. The coming months will determine if this "Board of Peace" can truly stabilize the region or if the rejection of a political horizon will fuel a new cycle of unrest.
Explore more exclusive insights at nextfin.ai.