Palestinians walk past destroyed buildings in Gaza City, January 5, 2026 (Photo: REUTERS/Dawoud Abu Alkas)

The first phase has been shaken by problems including Israeli airstrikes that have killed hundreds in Gaza, the remains of one last Israeli hostage still not having been returned and Israeli delays in reopening Gaza's border crossing with Egypt.

By pressing on with phase two, the United States and its mediator partners will need to tackle the even more vexing challenges of disarming Hamas, which has refused to give up its arms, and deploying an international peacekeeping force. Announcing the second phase in a social media post, President Donald Trump's special envoy Steve Witkoff said it "establishes a transitional technocratic Palestinian administration in Gaza" and would begin the process of disarmament and reconstruction.

The Palestinian body will have 15 members and will be led by Ali Shaath, a former deputy minister in the Palestinian Authority who had been in charge of developing industrial zones, according to a joint statement by mediators Egypt, Qatar and Turkey.