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Gaza reconstruction plan: $53 billion needed, Palestinian Authority to govern

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According to a plan devised by Arab leaders, the governance of Gaza will be handed over to the Palestinian Authority.

The “Arab plan,” prepared by Egypt for the reconstruction of Gaza and adopted at the Arab League’s Cairo Summit, envisages the establishment of a temporary administrative committee for a period of six months, followed by the transfer of Gaza’s governance to the Palestinian Authority. The plan suggests that, without explicitly naming Hamas, the group would lay down its arms if a credible political process is initiated.

Egypt has prepared a 91-page plan titled “Early Recovery, Reconstruction, and Development of Gaza.”

The report on this plan states that the total material damage resulting from Israel’s war of destruction on Gaza amounts to $29.9 billion, with the housing sector being the most affected, costing $15.8 billion and constituting 53% of the total damage.

According to the report, an estimated 30,000 residential buildings have been damaged, of which 272,000 apartments have been completely destroyed, and 58,500 apartments have been partially damaged.

The report indicates that satellite imagery reveals that 1,190 kilometers of Gaza Strip’s roads have been destroyed, with an additional 415 kilometers severely damaged and 1,440 kilometers significantly damaged.

In the health sector, the damage is estimated at $1.3 billion, with losses amounting to $6.3 billion. The report notes that 50% of the hospitals in the Gaza Strip (18 hospitals) are completely out of service, while 17 hospitals are partially operational, failing to meet the increasing health needs.

In the education sector, the damage is estimated at $874 million, with losses reaching $3.2 billion. The report highlights that 88% of schools have been destroyed, with the remainder converted into temporary shelters for families fleeing the war. Additionally, 51 university buildings have been destroyed.

In the trade and industry sector, the damage amounts to $5.9 billion, with losses totaling $2.2 billion. The report also estimates that the damage in the transportation sector is $2.5 billion, with losses of $377 million.

The damage in the water and sewage sector is recorded at $15 billion, with losses reaching $64 million. In the electricity sector, losses are estimated to be $450 million.

Recovery and reconstruction needs

Considering these damages, the plan estimates the total need for Gaza’s reconstruction at $53 billion, with $3 billion allocated for “early recovery” to be used within six months.

The report states that the housing sector accounts for the largest share of recovery needs, with a total value of $15.2 billion. This is followed by the health, trade, and industry sectors, each requiring $6.9 billion for recovery, roads at $2.45 billion, and the electricity sector at $1.5 billion.

The education sector needs $3.8 billion for recovery, while the agriculture and social protection sectors each require $4.2 billion. The transportation sector needs $2.9 billion, and the water and sanitation sector needs $2.7 billion.

The report indicates a need for $1.25 billion for a four-stage process that includes debris removal, unexploded ordnance disposal, recycling, and transformation.

Implementation stages of the plan

The report emphasizes the need to prepare a roadmap and an urgent development plan for the reconstruction of the Gaza Strip in three phases over a five-year period until 2030, accommodating approximately 3 million people.

The first phase, termed the “early recovery phase,” with an estimated timeframe of six months and a cost of $3 billion, includes tasks such as removing debris in some areas and repairing them for temporary housing, repairing 60,000 partially damaged houses to accommodate 360,000 people, and constructing 200,000 temporary housing units to accommodate 1.2 million people.

The second phase, with a two-year timeframe and a cost of $20 billion, envisages the construction of 200,000 new housing units, infrastructure development, completion of debris removal and sorting, restoration of 60,000 houses to accommodate 1.6 million people, reclamation of 20,000 acres of land, and the establishment of service facilities.

The third phase, termed the “second phase of reconstruction,” is expected to be completed in 2.5 years at a cost of $30 billion. This phase includes the construction of an additional 200,000 housing units to accommodate 1.2 million people and infrastructure development.

The report states that this phase envisages the establishment of the first stage of an industrial zone on a 600-acre area, as well as the construction of a fishing port, a commercial port, and Gaza Airport. It also indicates the provision of 500,000 jobs for Palestinians in Gaza in various sectors.

Political context of the plan

The plan states that while preserving the internationally accepted two-state solution horizon, reconstruction is based on the rights and dignity of Palestinians.

Emphasizing the rejection of any attempts to displace Palestinians from Gaza, the plan points out that it is illogical to ignore the desire and right of the Palestinian people, who are firmly attached to their land, to remain on this land in the face of this catastrophic crisis that the Gaza Strip and its people are experiencing.

Noting that the Gaza Strip is an integral part of the Palestinian territories, the plan warns that attempts to geographically separate Gaza from the West Bank will lead to further instability.

The plan warns that ignoring the suffering of Palestinians in Gaza could lead to an escalation of conflicts in the region and calls on the international community to support reconstruction efforts primarily for humanitarian reasons.

Transitional governance during Gaza’s reconstruction

Regarding the governance of Gaza during the reconstruction process, the plan indicates that efforts are underway to establish a temporary administrative committee composed of independent technocrats under the umbrella of the Palestinian government in the Gaza Strip for a period of six months, with the aim of paving the way for the full return of the Palestinian National Authority to the Gaza Strip.

The plan emphasizes that what is currently expected from the international community is to support and encourage these efforts to ensure the success of the administrative committee and its ability to manage the subsequent phase.

Regarding the mission to ensure security in Gaza, the plan notes that Egypt and Jordan are working to train Palestinian police to be sent to the Gaza Strip to enable the Palestinian Authority to return to the Gaza Strip and fulfill its administrative duties.

Calling for these efforts to be supported by political and financial support and the efforts of international and regional partners, the plan suggests that the United Nations Security Council consider deploying an international peacekeeping force in the Palestinian territories, including Gaza and the West Bank, within a clear timetable for the establishment of a Palestinian state.

The plan indicates that the problem of numerous Palestinian parties carrying weapons in Gaza can be eliminated forever “if the reasons are removed through a credible political process with a clear horizon and ensuring the return of rights to their owners.”

Egypt’s plan emphasizes that all previous efforts should be directed towards implementing the two-state solution and working to achieve a medium-term ceasefire between Israel and the Palestinian Authority, encompassing the West Bank and Gaza, as well as halting all unilateral initiatives such as settlement construction, house demolitions, military interventions, and protecting the legal and historical status of holy sites.

The plan notes that if there is political will, the reconstruction of Gaza as proposed is possible.

Middle East

France explores Syrian transit routes as alternative oil corridor to bypass Strait of Hormuz

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France is evaluating the creation of alternative energy routes through Syria to mitigate potential disruptions in the Strait of Hormuz following the resumption of hostilities between the United States and Iran. French Foreign Minister Jean-Noël Barrot stated that Paris is working on new transit routes for the transport of Persian Gulf oil, with Syria emerging as a prominent option in this context.

“Among the initiatives we have pursued since the beginning of this crisis is the concept of preparing alternative routes, in order to avoid remaining dependent on blockages that could occur here or there,” Barrot said.

Barrot indicated that Syria, which has entered a process of reunification following the collapse of the Bashar al-Assad administration, could become a “new regional hub.” The French minister characterized the country as a strategic corridor that could transport Persian Gulf oil to the Mediterranean, thereby reducing the impact of potential shipping disruptions in the Strait of Hormuz.

Stating that France wishes to expand commercial and economic cooperation with the Damascus administration, Barrot expressed that they aim to establish a secure transit route for Gulf producing nations through this cooperation.

According to Barrot, implementing this plan requires a comprehensive assessment of existing infrastructure and the provision of necessary security guarantees. The French minister noted that these efforts are of critical importance for securing global energy markets.

Barrot’s remarks followed French President Emmanuel Macron’s visit to Damascus on Tuesday. During the visit, Macron met with Ahmed Shara, the former al-Qaeda leader who has declared himself President of Syria.

Patrick Pouyanné, the Chief Executive Officer (CEO) of TotalEnergies, was among the delegation accompanying Macron. Characterizing Syria as a country situated “at the crossroads of the Middle East,” Pouyanné said it could establish a vital energy link between Iraq and the Mediterranean.

In response to the potential closure of the Strait of Hormuz, Iraq has been shipping its oil via tankers through Syria for export since April.

More than 600,000 tons of fuel were exported through this route between April and June. Last month, Iraqi and Syrian officials discussed the reactivation of the Kirkuk-Baniyas oil pipeline and the establishment of energy transit mechanisms.

TotalEnergies has also signed a memorandum of understanding for an offshore exploration block in the Mediterranean. However, Pouyanné stated that beyond this, the company currently has no concrete projects under development.

Stating that security conditions in the country have not yet stabilized, Pouyanné said, “It is clear today that the security situation does not yet permit us to operate here. However, I believe coming here, to Damascus, is a positive initiative.”

Shortly after Pouyanné’s statements, two bombs reportedly exploded near the Four Seasons Hotel, where the French delegation was staying.

Stating that the Syrian administration must be given time to establish control over the country, Pouyanné said, “We must not demand too much,” adding, “We need to be a little patient.”

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Middle East

Senior US military officers ignored system alerts on obsolete targets, leading to strike on Iranian school

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Senior US military commanders approved strike lists despite automated system warnings indicating that intelligence on certain targets in Iran was years out of date and required revalidation, according to a CNN report citing three sources familiar with the decision-making process.

The warnings were bypassed to “speed things up” under intense pressure to rapidly designate targets during the opening days of the conflict. One of the targets approved by commanders under these conditions resulted in a strike on a school in Minab.

This military decision is directly linked to the February 28 strike on the Shajara Tayyiba School in Minab, which killed at least 168 children and 14 teachers. The heavy loss of life makes the strike one of the mass casualty events involving the highest number of civilian deaths in the recent history of the US military.

According to the sources, automated system warning messages indicating that the intelligence was obsolete were already integrated into the database used during the target development process. Within this system, a target could only be added to a strike list with the approval of a senior officer. Two sources stated that the decision by senior commanders to ignore these warnings directly contributed to the school being targeted “by mistake.”

Military officials reportedly realized within days of the strike on the school that the error stemmed from outdated information. Despite the passage of months, the Pentagon has not released its investigation report on the incident.

A White House official stated that the investigation remains ongoing, asserting, “As we have said before, the US does not target civilians.”

The Pentagon referred inquiries on the matter to US Central Command (CENTCOM), which declined to comment, citing the active investigation.

School and military facility were located within the same compound

The strike reportedly occurred while the US military was targeting an Islamic Revolutionary Guard Corps (IRGC) facility located near the Shajara Tayyiba School. Initial military investigative findings also pointed to this conclusion.

Satellite imagery reveals negligence in the target analysis process. Imagery from 2013 shows the school and the IRGC base located within the same compound, whereas imagery from 2016 clearly indicates that the school had been separated from the base by a fence and provided with a separate entrance.

In satellite imagery dated December 2025, dozens of children can be seen playing in the schoolyard.

The strike took place on the first day of operations following Donald Trump’s decision to launch military action, a period during which military officials and intelligence analysts worked under intense pressure to update thousands of targets.

Analysts were unable to update all records in the Pentagon database prior to the operation. As a result, records for multiple targets—including the IRGC facility adjacent to the elementary school—consisted of information that was more than 10 years old.

Due to the accelerated timeline, analysts prioritized updating “high-priority” records, which included moving targets with a high probability of being struck first and locations posing an immediate threat to US forces. Because fixed facilities were deemed a lower priority, the information for the facility near the school was not updated.

Disconnected databases and staffing shortages compounded the error

At the center of the investigation are two separate targeting databases used by the Pentagon. These are known as the Modernized Integrated Database (MIDB), which was built in the 1980s and relies on manual data entry, and the Mitigation and Analysis Reporting System (MARS), a new artificial intelligence-backed digital platform.

Both systems indicated that information needed to be updated before use. However, efforts to fully transition to the MARS system were reportedly years behind schedule, leaving official targeting data still dependent on the legacy MIDB system.

An intelligence analyst had previously noted changes on the ground in a separate digital tool, but because this tool was not connected to the official targeting database, the information did not reach commanders. How this disconnect influenced the targeting of the school is also being examined as part of the investigation.

Following the strike, Donald Trump suggested that Iran might be responsible for the incident, later asserting that responsibility might never be determined. Defense Secretary Pete Hegseth stated that the strike would be thoroughly investigated, claiming that the US takes every possible measure to prevent civilian casualties.

However, due to cuts implemented early in Hegseth’s tenure, Civilian Harm Mitigation and Response (CHMR) teams within CENTCOM were reportedly facing severe staffing shortages.

Under the cuts made by Hegseth prior to the conflict with Iran, the 10-person civilian casualty specialist staff at CENTCOM was reduced to a single full-time employee.

Sources added that while the remaining staff did everything they could, they lacked adequate resources due to the budget and personnel cuts implemented by Hegseth.

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Middle East

US revokes Iran oil license and launches airstrikes following Strait of Hormuz tanker attacks

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The US Department of the Treasury’s Office of Foreign Assets Control (OFAC) has revoked a general license that permitted commercial transactions involving Iranian oil.

According to a statement issued by the agency, the “General License X” regulation, which had been in effect since June 21, 2026, was fully rescinded as of July 7, 2026, and replaced by the newly introduced “General License X1” regulation.

The statement noted that a wind-down period lasting until July 17 has been granted to allow for the completion of transactions initiated prior to the revocation.

The Iranian Ministry of Foreign Affairs reacted strongly to the OFAC decision, declaring that Tehran will take all necessary measures to protect its national security and interests.

In a statement shared on the ministry’s official Telegram channel, Iran stated: “The Ministry of Foreign Affairs of Iran decisively condemns the US Department of the Treasury’s decision to revoke the temporary suspension of sanctions on the sale of Iranian oil. This step is a flagrant violation of Article 10 of the memorandum of understanding concerning the cessation of military conflict.”

Following the decision, the US Armed Forces conducted a series of airstrikes targeting Iranian territory during the night of July 8. US officials maintained that the military operation was a response to Tehran’s actions in the region. Washington characterized Iran’s conduct as a violation of the ceasefire regime and a threat to the security of navigation in the region.

The Iranian state broadcaster, IRIB, reported that explosions occurred at various locations across the country. News sources noted that seven explosions were heard near the village of Taherui in the Sirik district, and six explosions were heard near the city of Qeshm.

Previously, US media outlets including The Wall Street Journal and Axios, citing US officials, had reported that despite the active ceasefire, forces of the Islamic Revolutionary Guard Corps had attacked oil tankers near the Strait of Hormuz.

According to data shared by the United Kingdom Maritime Trade Operations (UKMTO), a tanker off the coast of Oman was struck by an unidentified munition, causing a fire on board. It was reported that the incident resulted in no casualties, injuries, or environmental pollution.

The Wall Street Journal reported that one of the targeted vessels may have been the “Al Rekayyat,” a tanker owned by the Qatar-based shipping company Nakilat.

The vessel sustained damage to its engine room, though the crew was reported to be safe. Axios reported that while the attacked vessels sustained damage, no major destruction had occurred.

On June 18, 2026, the US and Iran had signed a memorandum of understanding that established a two-month ceasefire and envisioned the initiation of negotiations for a more comprehensive agreement.

Following the start of the ceasefire period, the US had also struck targets in Iran on June 27 and June 28, citing Iranian actions against commercial vessels in the Strait of Hormuz.

Following those strikes, the Islamic Revolutionary Guard Corps had announced that operations would be launched against US facilities located in Arab countries.

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