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US and China soften trade rhetoric, giving analysts hope of market rebound

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US and China soften trade rhetoric, giving analysts hope of market rebound

US and China soften trade rhetoric, giving analysts hope of market rebound

Tensions between the two countries appear to have cooled off on Sunday, as representatives from both sides signal a willingness to negotiate.

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Fears Trump may lose focus after praise for Gaza peace deal at Egypt summit

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Fears Trump may lose focus after praise for Gaza peace deal at Egypt summit

Sir Keir Starmer will on Monday join world leaders at a historic summit in Egypt to witness the signing of the Gaza peace plan to end two years of conflict, bloodshed and suffering, that has cost tens of thousands of lives and turned Gaza into a wasteland.

Travelling over to Egypt, flanked by his national security advisor Jonathan Powell, the prime minister told me it was a “massive moment” and one that is genuinely historic.

US President Donald Trump moved decisively last week to end this bloody war, pushing Israeli Prime Minister Benjamin Netanyahu and Hamas into a ceasefire as part of his 20-point peace plan.

Pic: AP
Image:
Pic: AP

In the flurry of the following 48 hours, Mr Starmer and another twenty or so leaders were invited to Egypt to bear witness to the signing of this deal, with many of them deserving some credit for the effort they made to bring this deal around, not least the leaders of Qatar, Egypt and Turkey, who pressed Hamas to sign up to this deal.

On Monday, the remaining 20 living hostages are finally set to be released, along with the bodies of another 28 who were either killed or died in captivity, and aid is due to flow back into a starving Gaza.

Some 1,200 Israelis were killed on 7 October 2023, with another 250 taken hostage. In the subsequent war, most of Gaza’s two million population has been displaced. More than 67,000 Gazans have been killed, according to Palestinian health officials

Then, the signing ceremony is due to take place on Monday afternoon in Sharm el-Sheikh. It will be a momentous moment after a long and bloody war.

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But it is only just the beginning of a long process to rebuild Gaza and try to secure a lasting peace in the region.

The immediate focus for the UK and other nations will be to get aid into Gaza with the UK committing £20m on Monday for water, sanitation and hygiene services for Gazans.

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Humanitarian aid rolls into Gaza

But the bigger focus for the UK and other European allies is what happens after the hostages are released and Israel withdraws its troops.

Because what happens next is a much bigger and more complicated task: rebuilding Gaza; turning it into a terrorist-free zone; governing Gaza – the current plan is for a temporary apolitical committee; creating an international stabilisation force and all the tensions that could bring about – which troops each side would allow in; a commitment for Israel not to occupy or annex Gaza, even as Netanyahu makes plain his opposition to that plan.

The scale of the challenge is matched by the scale of devastation caused by this brutal war.

The prime minister will tomorrow set out his ambition for the UK to play a leading role in the next phase of the peace plan.

Back home the UK is hosting a three-day conference on Gaza’s recovery and reconstruction.

Last week, France hosted European diplomats and key figures from Middle Eastern countries, Egypt, Jordan, Saudi Arabia and Qatar and later this week, the German chancellor is hoping to organise a conference on the reconstruction of Gaza with the Egyptians.

But in reality, European leaders know the key to phase two remains the key to phase one: and that’s Donald Trump.

As one UK figure put it to me over the weekend: “There is lots of praise, rightly, for the US president, who got this over the line, but the big challenge for us post-war is implementing the plan. Clearly, Arab partners are concerned the US will lose focus”.

The prime minister knows this and has made a point, at every point, to praise Mr Trump.

Bridget Phillipson and Mike Huckabee. Pics: Sky/AP
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Bridget Phillipson and Mike Huckabee. Pics: Sky/AP

His cabinet minister Bridget Phillipson learned that diplomatic lesson the hard way on Sunday when she was publicly lambasted by the US ambassador to Israel Mike Huckabee for suggesting to my colleague Trevor Phillips that the UK “had played a key role behind the scenes” and failed to mention Mr Trump by name.

“I assure you she is delusional,” tweeted Governor Huckabee. “She can thank @realDonaldTrump anytime just to set the record straight”.

On Monday, leaders will rightly be praising Mr Trump for securing the breakthrough to stop the fighting and get the remaining hostages home.

People hug next in Hostages Square. Pic: Reuters
Image:
People hug next in Hostages Square. Pic: Reuters

But this is only the beginning of a very long journey ahead to push through the rest of the 19-point plan and stop the region from falling back into conflict.

Britain has, I am told, been playing a role behind the scenes. The PM’s national security adviser Mr Powell was in Egypt last week and has been in daily touch with his US counterpart Steve Witkoff, according to government sources. Next week the King of Jordan will come to the UK.

Part of the UK’s task will be to get more involved, with the government and European partners keen to get further European representation on Trump’s temporary governance committee for Gaza, which Tony Blair (who was not recommended or endorsed by the UK) is on and Mr Trump will chair.

The committee will include other heads of states and members, including qualified Palestinians and international experts.

As for the former prime minister’s involvement, there hasn’t been an overt ringing endorsement from the UK government.

It’s helpful to have Mr Blair at the table because he can communicate back to the current government, but equally, as one diplomatic source put it to me: “While a lot of people in the Middle East acknowledge his experience, expertise and contact book, they don’t like him and we need – sooner rather than later – other names included that Gulf partners can get behind.”

On Monday it will be the US, Egypt, Qatar and Turkey that sign off on the peace plan they directly negotiated, as other Middle Eastern and European leaders, who have flown into Sharm el-Sheikh to bear witness, look on.

But in the coming days and weeks, there will need to be a big international effort, led by Mr Trump, not just to secure the peace, but to keep it.

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US ambassador to Israel calls cabinet minister ‘delusional’ for claim UK played key role in Gaza peace deal

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US ambassador to Israel calls cabinet minister 'delusional' for claim UK played key role in Gaza peace deal

The US ambassador to Israel has called cabinet minister Bridget Phillipson “delusional” after she told Sky News the UK played a key role in the Gaza peace deal.

The education secretary told Sunday Morning With Trevor Phillips that Sir Keir Starmer’s presence at a signing ceremony for the ceasefire deal in Egypt on Monday “demonstrates the key role that we have played”.

Politics latest: Phillipson announces crackdown on antisemitism at UK universities

She did not say exactly what the UK’s role in the ceasefire, largely attributed to Donald Trump, is or was.

But she added: “We have played a key role behind the scenes in shaping this.

“It’s right that we do so because it’s in all of our interest, including our own national interest, that we move to a lasting peace in the region.

“These are complex matters of diplomacy that we are involved in. But we do welcome and recognise the critical role that the American government played in moving us to this point.”

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However, the US ambassador to Israel, Mike Huckabee, reposted the Sky News clip of Ms Phillipson’s comments and said: “I assure you she’s delusional.

“She can thank Donald Trump anytime just to set the record straight.”

Mr Huckabee was part of the negotiating team for the peace deal, with Mr Trump calling the former Arkansas governor “AMAZING” as he said he “worked so hard, and did so much, to bring about peace in the Middle East”.

In August, Mr Huckabee said the UK and other European nations who said they would declare a Palestinian state were “having the counterproductive effect that they probably think that they want”.

Israel: UK did not play key role in peace deal

Israel’s deputy foreign affairs minister, Sharren Haskell, told Sky News the UK played “the opposite” of a key role in the peace deal after the Palestinian state declaration, which eventually happened in September.

She accused the PM’s initial threat “at a very sensitive time” in July of having “pushed Hamas to embolden their position and to refuse a ceasefire two months ago”.

“I think that right now, the quiet that was given during the negotiation, and to President Trump, had probably played a bigger role than what the government had done two months ago,” she said.

“The message that the UK government has sent Hamas was the message that: the longer they continue this war, they will be rewarded.

“I mean, you must understand that when a terrorist organisation is thanking you. You are on the wrong side of history.”

Read more:
Gaza latest: Hostages Square boos Netanyahu
Hamas official thanks Donald Trump for ceasefire deal

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Final preparations for hostages in Israeli hospital

Ms Phillipson stood by the decision to declare a Palestinian state, saying it was “the right thing to do”.

Husam Zomlot, the Palestinian ambassador to the UK, told Sky News it was a “moment of leadership” for the UK to declare a Palestinian state, and a “responsibility to begin to correct a century of the gravest historic injustices committed against our people”.

He added: “That moment three weeks ago, when the UK did recognise, is a moment when we can say that the wheels of history are turning in a different direction.”

No plans for British troops on the ground

The education secretary also told Sky News the government has “no plans” to put British troops into Israel or Gaza as part of a stabilisation force after the ceasefire.

The US military will help establish a multinational force in Israel, known as a civil-military coordination centre, which is likely to include troops from Egypt, Qatar, Turkey and the UAE.

Tens of thousands of Palestinians have walked back to Khan Younis in southern Gaza. Pic: AP
Image:
Tens of thousands of Palestinians have walked back to Khan Younis in southern Gaza. Pic: AP

On Friday, US officials said up to 200 US troops already based in the Middle East will be moved to Israel to help monitor the ceasefire in Gaza.

The day before, President Trump announced Israel and Hamas had “signed off on the first phase” of a peace plan he unveiled last week.

Pic: Reuters
Image:
Pic: Reuters

Aid trucks have been gathering in Egypt to cross into Gaza after months of warnings by aid groups of famine in parts of the territory.

In Israel, the remaining hostages are due to be returned from Gaza by Hamas on Monday under the first phase of the peace plan. Twenty are believed to still be alive, 26 have been declared dead, while the fate of two is unknown.

The ceasefire agreement has been made two years after Hamas stormed Israel on 7 October 2023, killing 1,200 people and taking 251 hostages.

Israel’s military offensive has killed more than 67,000 Palestinians in Gaza, according to the Hamas-run health ministry, which the UN deems reliable.

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