RAMALLAH, Palestine / ISTANBUL — October 16, 2025 — In a pivotal address that underscored the fragile optimism gripping the region, Palestinian Prime Minister Mohammad Mustafa declared Wednesday that his government stands fully equipped to spearhead the reconstruction of the war-ravaged Gaza Strip, even as the first phase of a U.S.-brokered ceasefire between Israel and Hamas takes tentative hold. Speaking at a reconstruction workshop in Ramallah, the West Bank city serving as the de facto administrative hub for the Palestinian Authority (PA), Mustafa framed the initiative as a cornerstone for achieving long-sought Palestinian statehood, with Jerusalem as its capital.
"Despite the difficulty of the mission and the complexity of the situation, the government is prepared for Gaza’s reconstruction and continues discussions with all relevant parties to achieve this goal," Mustafa stated, according to an official release from his office. His words, delivered amid a gathering of Palestinian officials, international donors, and civil society representatives, evoked a vision of resilience forged from devastation. "We will rise from Gaza’s catastrophe toward an independent state with Jerusalem as its capital, under the leadership of President Mahmoud Abbas and through the efforts of our national institutions," he continued. "We want an independent state free of war, occupation, and settlements—and, God willing, free of unemployment."
Mustafa's remarks come at a critical juncture, just days after the activation of Phase One of a comprehensive peace framework unveiled by U.S. President Donald Trump on September 29, 2025. Last week, Trump announced that Israel and Hamas had reached agreement on this initial stage, which commenced on Friday, October 11. The deal marked a rare breakthrough in a conflict that has defined the past two years, triggering widespread international acclaim—and scrutiny—over its potential to end the cycle of violence that began with Hamas's October 7, 2023, assault on southern Israel.
Under the terms of Phase One, Hamas released 20 living Israeli hostages—believed to be the last survivors among the 251 captives taken during the initial attack—in exchange for Israel freeing nearly 2,000 Palestinian prisoners, including high-profile figures held without trial under administrative detention. Additionally, Hamas handed over the remains of eight deceased captives, a gesture that, while somber, facilitated emotional reunions on the Israeli side and eased some immediate humanitarian pressures in Gaza. Israeli Prime Minister Benjamin Netanyahu's security cabinet ratified the agreement on October 9, paving the way for a 72-hour pause in hostilities that has allowed limited humanitarian aid convoys to enter the enclave for the first time in months.
The ceasefire's implementation has not been without hitches. Reports from Gaza indicate sporadic exchanges of fire along the border, and Israeli forces have maintained positions in northern Gaza, citing verification needs for the hostage releases. Hamas, for its part, has accused Israel of delaying prisoner transfers, while Palestinian officials in Ramallah decry the exclusion of the PA from direct negotiations. Yet, the pause has enabled displaced families to begin trickling back to ruined homes, and international observers, including Qatar and Egypt—the key mediators—have hailed it as a "historic first step" toward de-escalation.
Trump, speaking from the White House on October 14, emphasized the deal's momentum, crediting his administration's "unwavering commitment" to bridging divides. "This is Phase One of a bigger plan—a real plan, not some endless talk-fest," he said during a press briefing. The 20-point framework, which Trump described as a "grand bargain for the Middle East," envisions a multi-stage transition: Phase Two would establish a technocratic governing body in Gaza excluding Hamas, deploy a multinational stabilization force, and initiate Hamas's disarmament. Phase Three focuses on full Israeli withdrawal and large-scale reconstruction, potentially funded by a $50 billion Gulf-led consortium involving Saudi Arabia and the UAE.
Mustafa's government, however, views reconstruction not merely as a technical exercise but as an existential imperative tied to "national legitimacy." He stressed that "national civil and security institutions are the components capable of leading recovery, reconstruction, and the unification of institutions to pave the way for an independent state in Gaza, the West Bank, and Jerusalem." This aligns with the PA's long-standing push for institutional reforms, a technocratic overhaul promised since Mustafa's appointment in March 2024 as the first non-partisan prime minister in Palestinian history.
A former World Bank executive and chairman of the Palestine Investment Fund, Mustafa brings a technocratic pedigree to the role. His prior experience leading Gaza's post-2014 reconstruction efforts informs the current blueprint, which prioritizes debris clearance—estimated at 42 million tons—road reopenings, and temporary shelter for up to 350,000 displaced residents across 294 sites spanning 14,659 dunums (about 3,600 acres). The plan, coordinated by the Ministry of Public Works and Housing under Minister Ahed Bseiso, encompasses 56 programs and nearly 3,500 projects, developed in partnership with local NGOs, the private sector, and international allies. A forthcoming Reconstruction Conference in Cairo, hosted by Egypt, aims to mobilize funding, building on the New York Declaration from September 2025 that garnered Arab, Islamic, and Western consensus.
Yet, the path forward bristles with challenges. Since October 2023, Israeli military operations have claimed over 67,900 Palestinian lives in Gaza, according to the enclave's Health Ministry, with women and children comprising the majority—nearly 30% under 18 and 16% female. Independent analyses, including a peer-reviewed study in The Lancet published in January 2025, suggest the true toll, factoring in indirect deaths from disease, malnutrition, and collapsed healthcare, could exceed 93,000 by mid-year. The United Nations reports 735 attacks on medical facilities alone through June 2025, killing 917 and injuring 1,411. Gaza's infrastructure lies in tatters: 80% of buildings damaged or destroyed, water systems contaminated, and agricultural lands rendered infertile by bombardment.
On the Israeli side, the October 7 attack killed 1,195 people—mostly civilians—and the war has claimed 466 IDF soldiers, with 2,951 wounded. The human cost extends beyond borders: over 217 journalists, 120 academics, and 224 aid workers, including 179 UNRWA staff, have perished. In the West Bank, parallel violence has killed 1,048 Palestinians since October 2023, per UN data, fueling fears of a broader conflagration.
International reactions have been mixed. At the October 13 Sharm El-Sheikh summit in Egypt, Trump joined over 20 world leaders—including Egypt's Abdel Fattah el-Sisi, Turkey's Recep Tayyip Erdoğan, and Qatar's Tamim bin Hamad Al Thani—to sign a companion document outlining "rules and regulations" for the ceasefire. Notably absent were Israeli and Hamas representatives, underscoring the deal's indirect nature. Erdoğan, speaking in Istanbul, praised the framework but urged "immediate Phase Two implementation" to prevent relapse, while warning against any "new occupation" via the proposed stabilization force.
In Ramallah, Mustafa's workshop drew pledges from Denmark's Foreign Minister Lars Løkke Rasmussen, who affirmed support for relief efforts during a call on October 10. Tunisia's government, meeting Mustafa on the sidelines of a Seville development conference in July, echoed readiness to contribute expertise. Bloomberg reported in January 2025 that Mustafa envisions U.S.-Saudi collaboration for rebuilding, rejecting Trump's earlier floated idea of relocating Gazans to Egypt or Jordan as "unacceptable displacement."
Critics, however, question the plan's viability. Hamas, which controls Gaza's streets amid the ceasefire, has rejected disarmament outright, with exiled leader Khalil al-Hayya declaring on October 10 that the group would "hand over administration to technocrats" but retain influence. Israeli hardliners, including far-right ministers in Netanyahu's coalition, decry the prisoner swap as a "security risk," while PA rivals like Hamas accuse Ramallah of being sidelined. A June 2025 poll by the Palestinian Center for Policy and Survey Research showed 46% of Gazans favoring Hamas governance post-war, against 71% in the West Bank backing the PA—highlighting deep divisions.
Trump, undeterred, addressed Israel's Knesset on October 13, invoking a "new Middle East" and crediting envoys like Steve Witkoff and Jared Kushner. He implied Hamas could temporarily act as a "police force" in Gaza "for a reasonable period," a remark that drew rebukes from hostage families and drew parallels to his first-term Abraham Accords. On October 14, aboard Air Force One, Trump clarified his stance on statehood: "I'm talking about rebuilding Gaza, not one-state or two-state solutions. There are those who like one, those who like two. I haven't expressed an opinion."
As Phase Two looms—potentially involving an International Stabilization Force and Gulf billions—the stakes could not be higher. A U.S.-led coordination center in Israel is set to operationalize soon, overseeing aid and monitoring compliance. Yet, with Hamas consolidating power in Gaza City through clashes with rival clans and Israel vowing forced disarmament if needed, fragility pervades. "This isn't a gentle war," retired IDF chief Herzi Halevi reflected in September 2025, estimating over 200,000 Palestinian killed or injured. "We took the gloves off from the first minute."
For Palestinians like those in Khan Younis, where celebrations erupted post-announcement, hope flickers amid rubble. One resident, speaking to Al Jazeera, captured the sentiment: "We've buried too many. Now, let the building begin." Mustafa's vow in Ramallah echoes that plea, but as winter approaches and negotiations intensify, the question remains: Will reconstruction rise from the ashes, or will it crumble under the weight of unresolved grievances?
In Istanbul, Turkish officials hosted parallel talks this week, with Foreign Minister Hakan Fidan stressing "headway" in mediated discussions. As the world watches, the ceasefire's first breaths offer a sliver of possibility—for Gaza, for Palestine, for peace. But history cautions: Previous truces in November 2023 and January 2025 collapsed amid mutual accusations. Phase One's success now hinges on trust, a commodity as scarce as uncontaminated water in the Strip.
