Sharm Elshiekh – Egypt-

The two-year anniversary of the October 7th terror attacks brought the agonizing reality of the Gaza conflict into sharp focus, with delegations from Hamas and Israel engaged in pivotal, high-stakes indirect peace talks in Sharm el-Sheikh, Egypt. While cautious optimism surrounds the negotiations, a major sticking point remains: Hamas’s insistence on a guarantee of a full and comprehensive Israeli military withdrawal from the Gaza Strip, a demand firmly rejected by Israeli Prime Minister Benjamin Netanyahu.

These talks, brokered by Egyptian and Qatari mediators, represent what many view as the last, best chance to secure a ceasefire and release the remaining hostages after nearly two years of devastating warfare.

Headline Points

 * Talks Enter Day Two: Indirect negotiations between Israeli and Hamas officials on the US-drafted peace plan resumed on the two-year anniversary in the Egyptian Red Sea resort of Sharm el-Sheikh.

 * Core Deadlock: Hamas, led by senior official Khalil al-Hayya, is demanding a permanent ceasefire and the complete withdrawal of Israeli forces from Gaza, seeking a guarantee the war will not resume after the hostage release.

 * Israeli Counter-Demand: Israel’s delegation, led by top negotiator Ron Dermer, is moving forward with the US plan, but Prime Minister Netanyahu has publicly maintained that Israeli forces will not fully leave Gaza and that the war will not end until Hamas is disarmed.

 * Trump Plan Focus: The negotiations centre on the first phase of the US 20-point peace plan, which calls for an immediate ceasefire, a massive surge of aid, and the release of the estimated 48 remaining hostages in exchange for Palestinian prisoners.

 * US Pressure: US Envoy Steve Witkoff and Jared Kushner are actively involved, underscoring intense pressure on both sides to quickly agree on the mechanism for the hostage release, which is intended to occur within 72 hours of a ceasefire.

 * Global Urgency: The international community, including UN agencies, is pushing for a rapid agreement to alleviate the “indescribable pain” and acute humanitarian crisis in the enclave.

The Battle Over Withdrawal

The core of the current deadlock revolves around the long-term status of Gaza and the future of the Israeli military presence. The US-backed 20-point peace proposal, which has been officially accepted by Israel, outlines a phased approach that includes a gradual withdrawal of Israeli forces and the deployment of an international stabilisation force. However, Prime Minister Netanyahu has repeatedly stated that Israel will maintain military control over Gaza to prevent future threats and has publicly opposed the formation of a sovereign Palestinian state.

Conversely, Hamas has made the guarantee of a complete and permanent end to the Israeli military presence—not just a temporary ceasefire—a non-negotiable condition for the release of the final group of hostages. Senior Hamas official Khalil al-Hayya stated that the group wants “guarantees of a lasting ceasefire” and a full Israeli withdrawal before the last hostage is freed. This position mirrors previous demands that the group would not disarm or forgo its influence in Gaza, despite the US plan’s call for demilitarisation and placing the territory under international governance.

The Faces at the Negotiation Table

The indirect talks involve Arab mediators shuttling between the delegations led by two key figures. For Israel, the delegation is headed by Ron Dermer, Minister of Strategic Affairs and a close confidant of Prime Minister Netanyahu, whose position is aligned with the government’s dual goals of eliminating Hamas’s military capabilities and securing the hostages. Leading the Hamas delegation is senior official Khalil al-Hayya, who has publicly vowed to advocate for the Palestinian demands, including the full withdrawal and reconstruction of Gaza under a technocratic Palestinian body.

The arrival of high-level US figures, including Special Envoy Steve Witkoff and former Middle East Envoy Jared Kushner, signals the critical nature of the current push. US President Donald Trump, who unveiled the comprehensive peace plan last week, expressed cautious optimism on the day, stating there was a “real chance” of a deal.

Despite the positive atmosphere reported by Egyptian media following the first day of talks, the deep, existential gaps remain a formidable obstacle. While the first phase—a ceasefire for a hostage-prisoner exchange—has reportedly seen a consensus on most terms, the commitment to a complete Israeli withdrawal and the future governance of Gaza could quickly derail the fragile process, keeping the nearly two-year war grinding on.