The federal Coalition has rejected Donald Trump’s proposal to “clean out” Gaza by resettling Palestinians in nearby countries, breaking with the United States president on a key issue amid a domestic debate about how to respond to his policies.
Egypt has also long been concerned that any long-term camps in the Sinai could become a new base for Palestinian fighters, risking Egypt’s relationship with Israel.
Meanwhile, the Israel-Hamas ceasefire continues to hold as thousands of Palestinians head back to northern Gaza after four Israeli soldiers were released under the agreement.
Israel will allow Gazans to return to their homes in the north from Monday.