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Phase Two of the Hostage Deal: What Happens Next?

People stand next to flags on the day the bodies of deceased Israeli hostages, Oded Lifschitz, Shiri Bibas, and her two children Kfir and Ariel Bibas, who were kidnapped during the deadly Oct. 7, 2023, attack by Hamas, are handed over under the terms of a ceasefire between Hamas and Israel, in Tel Aviv, Israel, Feb. 20, 2025. Photo: REUTERS/Ammar Awad

Israel and Hamas are nearing completion of “Phase 1” of the January 19 ceasefire and hostage release deal, and what will happen next remains shrouded in mystery. 

An estimated 27 living hostages and an estimated 32 bodies of murdered hostages remain in captivity. Furthermore, the Hamas terror organization remains armed and in control of Gaza, and both Israel and Hamas are expressing opposing demands for which there is no possible compromise. But the world has changed since October 7, 2023, and the way forward may offer an unexpected new option.

The deal with Hamas was designed to occur in three phases: 1. Release of Israeli women, children, and elderly hostages in exchange for the release of Palestinian terror convicts held in Israeli prisons, as well as Israeli withdrawal from certain parts of Gaza, 2. Release of all remaining hostages in exchange for permanent and complete Israeli withdrawal from Gaza, and 3. Rebuilding Gaza.

In effect, the only way to proceed to Phase 2 is for Israel to allow Hamas to remain in power and to be the beneficiary of massive amounts of international aid, thus almost certainly ensuring another October 7 style attack will lie in Israel’s future. Israel is determined to not permit such an outcome, and Hamas is determined to not settle for anything less.  

While the Israeli government has been tight lipped about its plans (perhaps because no decision has yet been reached), one anonymous official leaked the following:

Hamas has three choices.

  1. Disarm, send its leaders into exile, and give up any civil control over Gaza, thus releasing the hostages and ending the war.
  2. Continue releasing hostages in the style of Phase 1, and thus extend the ceasefire for now.
  3. Return to war. 

The Israeli official added that if there isn’t an agreement or another release of hostages by March 8, then war will resume. 

It is unlikely that Hamas would choose option #1 (exile), which leaves option #2 (ongoing hostage release), option #3 (war), or Hamas’sdemand for total Israeli withdrawal.

Some Israelis suggest that Israel agree to Hamas’ terms as a kind of ruse, and then, once all the hostages are released, to violate the deal and return to war.Yet Hamas is not unsophisticated and will almost certainly maintain leverage over Israel: either by finding an excuse to hold back some hostages indefinitely, or else by some international mechanism that would succeed in tying Israel’s hands.

Others Israelis insist on agreeing to Hamas’ demands and paying “any price” for the return of the hostages, even if that price results in future terror attacks, future hostages, and future bloodshed for even more Israelis. Still others point out, quite correctly, that in 16 months of war, Israel has not fully accomplished any of its goals: as both Hamas remains in power, and Israeli hostages remain in Gaza. 

Yet much has changed in recent months, and if Israel were to return to war, it would be prosecuted differently. Israel has been compelled to essentially fund both sides of this war, effectively providing fuel, electricity, and humanitarian supplies to Hamas. Hamas habitually stole these supplies and used them in two ways: 1. to directly support its fighters and fuel its rockets, or else 2. by selling supplies to civilians in order to raise funds for its military activities. This tactic also ensures Hamas’ ongoing popularity among the populace, as the terror group remains the sole source of food and supplies. Furthermore, international pressure greatly limited Israel’s ability to strike when and how it wished, to use certain weapons, or even to relocate Gaza’s civilians out of harm’s way, thus forcing Israel to fight through human shields.

Israel now has far greater support from the United States for aggressive action, including moving civilians out of Gaza. Such an approach would leave Gaza a total military zone, where Israel would have nearly unlimited freedom of action, and there would be no need for humanitarian aid, as there would be no civilian population to receive it. Moving civilians has proven highly effective over the past 16 months despite international doubts. For example, shortly after US Vice President Kamala Harris opposed moving civilians out of Rafah last March, claiming, “I have studied the maps, there’s nowhere for those folks to go,”  Israel proved her wrong, moving a million people in just 10 days. Similar movements were accomplished out of Jabalya, Khan Yunis, and Gaza City.  

It is also likely that, regardless of the fate of Hamas, Israelis will never be truly safe unless all Palestinians are relocated out of Gaza. Formerly an extreme right wing opinion, this notion is now the mainstream Israeli consensus across the entire political spectrum, with widespread support from almost all Israeli Jews (left, right and center) as well as nearly half of Israeli Arabs.

The impediment to moving Palestinians out of Gaza is therefore not the ability to physically move them, nor Israeli domestic opinion, nor international law which explicitly permits such movements, but rather the refusal of the Arab world to accept Palestinians under any circumstances. 

Yet America has significant leverage over Egypt and Jordan, and has recently demonstrated a newfound openness to actually using it. For example: a mostly forgotten bit of history is that the Arab Spring (and the resulting overthrow of Egypt’s government) actually began when Russia stopped providing low cost wheat exports in 2011, thus spiking the price of bread within Egypt, and triggering the famous protests in Tahrir Square. This example demonstrates just how fragile certain middle eastern economies actually are. The United States, which provides billions of dollars of aid to Egypt and Jordan, can trigger similarly crippling economic effects with the stroke of a pen, thus endangering the very existence of entire countries without firing a shot.

Israelis are caught in a paradox: on the one hand wanting all hostages home, and on the other, wanting to fight for a safer reality on Israel’s southern border. The most likely outcome is that Phase 1 will informally continue, with ongoing hostage releases in exchange for ongoing ceasefire, until Hamas decides that the risk of no longer holding hostages is greater than the risk of imminent war. At that point, we will likely see a re-eruption of war in Gaza, but of a vastly different and more effective character than we have seen up until now.  

One can only imagine how much bloodshed would have been spared on all sides, and how much more quickly the hostages might have come home, had Israel received the international support it both needed and deserved 16 months ago.

Daniel Pomerantz is the CEO of RealityCheck, an organization dedicated to deepening public conversation through robust research studies and public speaking.

The post Phase Two of the Hostage Deal: What Happens Next? first appeared on Algemeiner.com.

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Iranian Media Claims Obtaining ‘Sensitive’ Israeli Intelligence Materials

FILE PHOTO: The atomic symbol and the Iranian flag are seen in this illustration, July 21, 2022. REUTERS/Dado Ruvic/Illustration/File Photo

i24 NewsIranian and Iran-affiliated media claimed on Saturday that the Islamic Republic had obtained a trove of “strategic and sensitive” Israeli intelligence materials related to Israel’s nuclear facilities and defense plans.

“Iran’s intelligence apparatus has obtained a vast quantity of strategic and sensitive information and documents belonging to the Zionist regime,” Iran’s state broadcaster said, referring to Israel in the manner accepted in those Muslim or Arab states that don’t recognize its legitimacy. The statement was also relayed by the Lebanese site Al-Mayadeen, affiliated with the Iran-backed jihadists of Hezbollah.

The reports did not include any details on the documents or how Iran had obtained them.

The intelligence reportedly included “thousands of documents related to that regime’s nuclear plans and facilities,” it added.

According to the reports, “the data haul was extracted during a covert operation and included a vast volume of materials including documents, images, and videos.”

The report comes amid high tensions over Iran’s nuclear program, over which it is in talks with the US administration of President Donald Trump.

Iranian-Israeli tensions reached an all-time high since the October 7 massacre and the subsequent Gaza war, including Iranian rocket fire on Israel and Israeli aerial raids in Iran that devastated much of the regime’s air defenses.

Israel, which regards the prospect of the antisemitic mullah regime obtaining a nuclear weapon as an existential threat, has indicated it could resort to a military strike against Iran’s installations should talks fail to curb uranium enrichment.

The post Iranian Media Claims Obtaining ‘Sensitive’ Israeli Intelligence Materials first appeared on Algemeiner.com.

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Israel Retrieves Body of Thai Hostage from Gaza

Israeli Defense Minister Israel Katz looks on, amid the ongoing conflict in Gaza between Israel and Hamas, in Jerusalem, Nov. 7, 2024. Photo: REUTERS/Ronen Zvulun

The Israeli military has retrieved the body of a Thai hostage who had been held in Gaza since Hamas’ October 7, 2023 attack, Defense Minister Israel Katz said on Saturday.

Nattapong Pinta’s body was held by a Palestinian terrorist group called the Mujahedeen Brigades, and was recovered from the area of Rafah in southern Gaza, Katz said. His family in Thailand has been notified.

Pinta, an agricultural worker, was abducted from Kibbutz Nir Oz, a small Israeli community near the Gaza border where a quarter of the population was killed or taken hostage during the Hamas attack that triggered the devastating war in Gaza.

Israel’s military said Pinta had been abducted alive and killed by his captors, who had also killed and taken to Gaza the bodies of two more Israeli-American hostages that were retrieved earlier this week.

There was no immediate comment from the Mujahedeen Brigades, who have previously denied killing their captives, or from Hamas. The Israeli military said the Brigades were still holding the body of another foreign national. Only 20 of the 55 remaining hostages are believed to still be alive.

The Mujahedeen Brigades also held and killed Israeli hostage Shiri Bibas and her two young sons, according to Israeli authorities. Their bodies were returned during a two-month ceasefire, which collapsed in March after the two sides could not agree on terms for extending it to a second phase.

Israel has since expanded its offensive across the Gaza Strip as US, Qatari and Egyptian-led efforts to secure another ceasefire have faltered.

US-BACKED AID GROUP HALTS DISTRIBUTIONS

The United Nations has warned that most of Gaza’s 2.3 million population is at risk of famine after an 11-week Israeli blockade of the enclave, with the rate of young children suffering from acute malnutrition nearly tripling.

Aid distribution was halted on Friday after the US-and Israeli-backed Gaza Humanitarian Foundation said overcrowding had made it unsafe to continue operations. It was unclear whether aid had resumed on Saturday.

The GHF began distributing food packages in Gaza at the end of May, overseeing a new model of aid distribution which the United Nations says is neither impartial nor neutral. It says it has provided around 9 million meals so far.

The Israeli military said on Saturday that 350 trucks of humanitarian aid belonging to U.N. and other international relief groups were transferred this week via the Kerem Shalom crossing into Gaza.

The war erupted after Hamas-led terrorists took 251 hostages and killed 1,200 people, most of them civilians, in the October 7, 2023 attack, Israel’s single deadliest day.

The post Israel Retrieves Body of Thai Hostage from Gaza first appeared on Algemeiner.com.

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US Mulls Giving Millions to Controversial Gaza Aid Foundation, Sources Say

Palestinians carry aid supplies which they received from the US-backed Gaza Humanitarian Foundation, in the central Gaza Strip, May 29, 2025. Photo: REUTERS/Ramadan Abed/File Photo

The State Department is weighing giving $500 million to the new foundation providing aid to war-shattered Gaza, according to two knowledgeable sources and two former US officials, a move that would involve the US more deeply in a controversial aid effort that has been beset by violence and chaos.

The sources and former US officials, all of whom requested anonymity because of the sensitivity of the matter, said that money for Gaza Humanitarian Foundation (GHF) would come from the US Agency for International Development (USAID), which is being folded into the US State Department.

The plan has met resistance from some US officials concerned with the deadly shootings of Palestinians near aid distribution sites and the competence of the GHF, the two sources said.

The GHF, which has been fiercely criticized by humanitarian organizations, including the United Nations, for an alleged lack of neutrality, began distributing aid last week amid warnings that most of Gaza’s 2.3 million population is at risk of famine after an 11-week Israeli aid blockade, which was lifted on May 19 when limited deliveries were allowed to resume.

The foundation has seen senior personnel quit and had to pause handouts twice this week after crowds overwhelmed its distribution hubs.

The State Department and GHF did not immediately respond to requests for comment.

Reuters has been unable to establish who is currently funding the GHF operations, which began in Gaza last week. The GHF uses private US security and logistics companies to transport aid into Gaza for distribution at so-called secure distribution sites.

On Thursday, Reuters reported that a Chicago-based private equity firm, McNally Capital, has an “economic interest” in the for-profit US contractor overseeing the logistics and security of GHF’s aid distribution hubs in the enclave.

While US President Donald Trump’s administration and Israel say they don’t finance the GHF operation, both have been pressing the United Nations and international aid groups to work with it.

The US and Israel argue that aid distributed by a long-established U.N. aid network was diverted to Hamas. Hamas has denied that.

USAID has been all but dismantled. Some 80 percent of its programs have been canceled and its staff face termination as part of President Donald Trump’s drive to align US foreign policy with his “America First” agenda.

One source with knowledge of the matter and one former senior official said the proposal to give the $500 million to GHF has been championed by acting deputy USAID Administrator Ken Jackson, who has helped oversee the agency’s dismemberment.

The source said that Israel requested the funds to underwrite GHF’s operations for 180 days.

The Israeli government did not immediately respond to a request for comment.

The two sources said that some US officials have concerns with the plan because of the overcrowding that has affected the aid distribution hubs run by GHF’s contractor, and violence nearby.

Those officials also want well-established non-governmental organizations experienced in running aid operations in Gaza and elsewhere to be involved in the operation if the State Department approves the funds for GHF, a position that Israel likely will oppose, the sources said.

The post US Mulls Giving Millions to Controversial Gaza Aid Foundation, Sources Say first appeared on Algemeiner.com.

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