The Middle East stands on the brink of a seismic shift as reports confirm Israeli Prime Minister Benjamin Netanyahu’s decision to pursue a full occupation of the Gaza Strip. This bold move, backed by Israeli media outlets like i24NEWS, The Jerusalem Post, and Channel 12, signals an escalation in the nearly two-year conflict with Hamas, raising urgent questions about international response, regional stability, and the future of the two-state solution. With the United States seemingly providing tacit support, the global community watches as tensions mount.
Netanyahu’s Occupation Plan: A Defiant Stance
Israeli media reported that Netanyahu’s war cabinet is set to approve military operations across the entirety of Gaza, including areas where Hamas holds hostages. A senior official in Netanyahu’s office, quoted by Channel 12 analyst Amit Sega, declared, “The decision has been made. Hamas won’t release more hostages without total surrender, and we won’t surrender.” This escalation comes amid mounting domestic pressure following the release of distressing footage showing emaciated hostages Rom Braslavski and Evyatar David, intensifying calls for their release. Netanyahu has doubled down, vowing to eliminate Hamas and ensure Gaza no longer threatens Israel, with a cabinet meeting scheduled for August 5 to formalize the plan.
The occupation would extend Israel’s current control—already spanning 75% of Gaza—into the remaining territories, a move that could endanger hostages, as warned by IDF Chief of Staff Lt.-Gen. Eyal Zamir. Despite this, Netanyahu’s office reportedly told Zamir to comply or resign, highlighting a rift within Israel’s leadership. With over 60,930 Palestinians killed since October 2023, including 18,430 children, and 74 more, including 36 aid seekers, killed on August 4 alone, the humanitarian crisis deepens, fueling global outrage.
U.S. Role: Silent Backing Amid International Pressure
The United States, Israel’s staunchest ally, appears to be enabling this occupation through its strategic and military support. While no explicit statement from the Biden or Trump administration endorses the full occupation as of August 5, 2025, the U.S. has historically provided $3.8 billion annually in military aid to Israel, including advanced weaponry used in Gaza. Recent reports of U.S. envoy Steve Witkoff’s engagement with Israeli officials suggest ongoing diplomatic coordination, potentially softening international criticism. This support contrasts with growing U.S. public sentiment, with 74% favoring a permanent ceasefire, per AllSides data, indicating a disconnect between policy and populace.
The U.S. influence likely shields Israel from harsher global repercussions, a pattern seen in past conflicts. This backing could embolden Netanyahu to ignore calls for a ceasefire, risking further escalation with Hamas and neighboring states like Egypt and Jordan, both of which have condemned the occupation plans.
Effects on the Middle East: A Powder Keg Ignited
A full occupation of Gaza could destabilize the Middle East profoundly. Egypt, which controls Gaza’s southern border, has warned of a “catastrophic” refugee crisis if Palestinians are displaced, potentially straining the 1979 peace treaty with Israel. Jordan, hosting 2 million Palestinian refugees, faces similar pressures, with King Abdullah II criticizing the move as a threat to regional security. Iran and its proxies, including Hezbollah, may exploit the situation to rally support, escalating tensions along Israel’s northern border, where clashes have already intensified in 2025.
Economically, the conflict could disrupt trade routes, with the Suez Canal—handling 12% of global trade—vulnerable to heightened instability. Oil prices, already volatile due to Middle East tensions, could surge, impacting global markets. Within Israel, the occupation might deepen domestic divisions, with protests against Netanyahu growing and the far-right pushing for annexation, potentially fracturing the coalition government.
European Silence: A Consequence of American Pressure?
Why are European countries silent on this open aggression? The answer lies in American influence. The EU, despite its rhetorical support for a two-state solution, has been criticized for inaction by former diplomat Josep Borrell, who called the bloc “complicit” in Israeli war crimes. Borrell highlighted that a third of Israeli bombs in Gaza are European-made, yet Brussels has imposed only minor sanctions on 20 individuals for West Bank settlement activities—far less than the thousands sanctioned against Russia. He attributed this reluctance to member states’ unwillingness to confront Israel and EU Commission head Ursula von der Leyen’s refusal to prioritize sanctions discussions.
This silence reflects U.S. pressure, as NATO ally dynamics and economic ties—Europe imports 15% of its gas via U.S.-mediated deals—deter strong action. France, the UK, and Canada’s recent moves to recognize Palestine are symbolic but lack enforcement, suggesting a fear of alienating Washington. This passivity risks eroding the EU’s international credibility, as Borrell warned, potentially fueling anti-Western sentiment in the Arab world.
The Two-Nation Agenda: Buried Under Occupation?
Is the global two-nation agenda—envisioning a Palestinian state alongside Israel—going to be buried? Netanyahu’s occupation plan, coupled with conditions like Hamas’s disarmament and leadership exile, directly undermines this framework. The 125-nation UN conference in August 2025 urging a two-state solution contrasts with Israel’s actions, which align with far-right calls for annexation. Trump’s February 2025 proposal to expel Gazans, endorsed by Netanyahu, further jeopardizes the agenda, drawing accusations of ethnic cleansing from rights groups.
The occupation could render Gaza uninhabitable, displacing 2.3 million Palestinians and eliminating the territorial basis for a state. With 140 UN members already recognizing Palestine, but major powers like the U.S. and Germany resisting, the two-state solution hangs by a thread. Hamas official Osama Hamdan’s accusation of Western complicity underscores growing skepticism, potentially radicalizing regional actors and burying hopes for peace.
A Reckoning for Global Diplomacy
Israel’s potential occupation of Gaza, supported by U.S. backing, defies global opposition, risking a Middle East-wide conflict and the collapse of the two-state solution. European silence, driven by American pressure, highlights a failure of international leadership, while the humanitarian toll—over 60,000 dead and a starving population—demands urgent action. Unless the U.S. leverages its influence for a ceasefire and the EU imposes meaningful sanctions, the occupation could cement a new era of instability, leaving the two-nation dream in ruins.
