Donald Trump's Peace Council collided with the war in Iran. That slowed what little progress it has made since the president — along with a group of world leaders — announced the initiative last month.
As a representative of the Trump administration announced on Tuesday, the Peace Council has so far opened accounts with the World Bank and JP Morgan Chase. “We are currently working with countries that have made pledges to obtain information from them regarding transfers,” added the official, who asked not to be named. In February, some member states pledged to donate over $16 billion to the council. (at the current exchange rate PLN 58 billion), with the United States promising the lion's share of this amount, i.e. USD 10 billion. (PLN 36 billion).
However, since then, US-Israeli attacks on Iran have resulted chaos that wiped out even modest progress achieved by the White House negotiating duo of Steve Witkoff and Jared Kushner.
The creation of the Peace Council was announced as part of a ceasefire the US brokered in October between Israel and Hamas. Its goal was to establish a framework for the reconstruction of the Gaza Strip — and beyond.
According to a leaked copy of its charter, the council's mission is to build “peace in areas affected by or at risk of conflict.” Under the watchful eye of Witkoff and Kushner, Israel and Hamas exchanged hostages and prisoners, and Israel opened the Rafah border crossing between Egypt and Gaza.
Currently, it appears that US-Israeli attacks on Iran are standing in the way of peace. Indonesia's president threatened to withdraw if the council did not benefit the Palestinians. The country's foreign minister said all talks on the council were on hold because of the war with Iran.
Far from achieving the goal
A Trump administration official said talks with Indonesia were ongoing and that “the Peace Council is committed to bringing stability and prosperity to the people of the Gaza Strip.” Of course, other countries, such as Azerbaijan and Jordan, have said they remain committed.
However, the main goal of the Peace Council – reconstruction of the Gaza Strip — remains far from being realized. A key condition for reconstruction is the disarmament of Hamas, but little is happening on this front.
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Israel also closed the Rafah border crossing, citing the war with Iran. This a step back in the ceasefire planwhich led to a decline in aid delivered to the enclave. When asked about the border issue, an administration representative referred POLITICO to the Israeli government.
“At this stage, the Rafah border crossing remains temporarily closed due to the missile threat. It will be reopened as soon as the security situation allows,” said the Coordinator of Government Activities in the Territories (COGAT), an institution of the Israeli Ministry of Defense.
Excluded from the agenda
Zaha Hassan, who advised the Palestinian negotiating team during its bid for UN membership, noted that the Peace Council's mandate on the Security Council expires at the end of 2027.
— If you say that the Peace Council is the only way, and the Peace Council is not able to influence Israel regarding its obligations, then it does not look very good for its prospects, especially considering its expiration – notes the expert, currently a senior researcher at the Carnegie Endowment for International Peace think tank.
Donald Trump at the inauguration of the Peace Council, Washington, February 19, 2026.Saul Loeb / AFP
– Certain things are clearly visible reversing in small progressthat have been achieved, says David Schenker, who served as Deputy Secretary of State for the Middle East in the first Trump administration and is currently a member of the pro-Israel center Washington Institute for Near East Policy.
Schenker adds that the small number of Trump officials who have the authority to make foreign policy decisions likely exacerbates this problem. — Apart from Gaza, there are a number of other issues that have been temporarily excluded from the agenda due to the priority of Iran and the war, he notes.
High stakes
Trump continues to have confidence in Witkoff and Kushner, saying they are both “doing a great job.” They were supposed to visit Israel on Tuesday, but they postponed the trip.
Witkoff, for his part, presented an optimistic vision that war with Iran could lead to wider regional cooperation. In a Tuesday interview with CNBC, he said that Gulf countries struggling with Iranian drones and missiles are “coming out of hiding, calling us and repeatedly reaching out to us on behalf of countries that want to join the Abraham Peace Accords.”
If the Peace Council fails to achieve its broader mission of disarming Hamas and rebuilding the enclave, the stakes will be high. Palestinian journalist Mohammed R. Mhavish noted in The Nation magazine this week that the regional turmoil caused by the attacks on Iran has made Gaza “more exposed to escalation of Israeli actions than ever before from October 2023.”
“I wouldn't consider it a priority right now. Everyone knows that Israel is ready to carry out this task if necessary, but let's leave it to others. Currently we have a government of technocrats. This is their test,” said Israeli President Yitzhak Herzog in an interview with Bild, which, like POLITICO, belongs to the Axel Springer Global Reporters Network, when asked about the disarmament of Hamas.
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