The War in Gaza: The Ceasefire Conundrum, Attack on Gaza City, and Israel's new settlement plans

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CW Note

The War in Gaza: The Ceasefire Conundrum, Attack on Gaza City, and Israel's new settlement plans

Brighty Ann Sarah and R Preetha
21 August 2025

In the news
On 20 August, an Israeli military spokesperson said: “We have begun the preliminary operations and the first stages of the attack on Gaza City, and already now IDF forces are holding the outskirts of Gaza City." Israel has also called upon 60,000 reservists set to report by September.

On 19 August, Israel responded that the ceasefire proposal was still under review, while several far-right members of the Netanyahu cabinet, including National Security Minister Itamer Ben Gvir and finance minister Bezalel Smotrich rejected the partial deal. Earlier, on 18 August, Egyptian and Qatari officials stated that Hamas accepted the new 60-day ceasefire proposal that included the return of ten living and 18 deceased Israeli hostages, in exchange for the return of 200 Palestinians. The proposal demands the partial withdrawal of Israeli forces and the flow of humanitarian aid into the territory.

On 14 August, Smotrich approved construction of 3,401 houses for Israeli settlers in the E1 area settlement project. On 20 August, Israel issued the final approval for the project. Smotrich stated that “the Palestinian state is being erased from the table not with slogans but with actions,” and that “every settlement, every neighbourhood, every housing unit is another nail in the coffin of this dangerous idea.”

On 17 August, thousands of Israelis joined a nationwide strike in support of families of hostages held in Gaza, calling on Prime Minister Benjamin Netanyahu to secure a deal with Hamas to end the war and release the remaining captives.

Issues at large
First, the plan to reoccupy Gaza and the threat of displacement. The UN has warned that relocation of Gaza residents to the south of the enclave, which Israel states as a safety measure, will only deepen humanitarian suffering, especially as no part of Gaza is truly safe. According to the UN, over 1.9 million, nearly 90 per cent of the population of Gaza have already been displaced since the war began. The threat of permanent displacement grows increasingly real with Israel’s advancing settlement plans and its new offensive plan to seize control of northern Gaza City, the enclave's largest urban centre.

Second, the Hamas approval and Israeli rejection of the ceasefire. Israel’s acceleration of plans to re-occupy Gaza has forced Hamas to come forward for a ceasefire agreement that, as stated by Qatari sources, aligns mostly with the terms of the previous deal proposed by Witkoff. However, Israel’s commitment to a diplomatic resolution of the conflict is questionable. As Israel implements the first steps of its re-seizing of Gaza through military offensive and the reoccupation of the West Bank through the E1 project, another Israeli rejection of a negotiation is a likely outcome.

Third, background to the E1 area settlement project. Israel’s finance minister Bezalel Smotrich approved construction of 3,401 houses for Israeli settlers in the E1 area settlement project which would connect Jerusalem and the existing Israeli settlement of Maale Adumim. The project would divide the occupied West Bank into northern and southern regions, preventing the creation of a contiguous Palestinian territory linking occupied East Jerusalem to key cities including Bethlehem and Ramallah. Israel postponed the plan in 2022 under US pressure, but Netanyahu’s far-right government has advanced road projects and restricted Palestinian access in recent months. Palestinians fear the surge in West Bank settlement building, which has accelerated since the 2023 Hamas attack, will rob them of any prospects for statehood. It has raised international alarm with the UN Human Rights office and the European Commission spokesperson stating it’s a violation of international law.

In perspective
First, Israel's tough position on the ceasefire and the hostages. Israel’s hardline reluctance to accept the ceasefire deal and hostage negotiations, coupled with its re-occupation of Gaza, indicate a shift that prioritizes territorial control over diplomatic resolution. The expanded military operation and takeover of Gaza without the recovery of the hostages have put the Israeli government in a tough spot domestically, as the population grows increasingly impatient towards the prolonged occupation of Gaza. Israel’s tough position on the ceasefire and aid blockades endangers the well-being of the remaining hostages.

Second, Israeli settlement expansion plans and what they mean for Palestinian statehood. The proposed E1 settlement project marks more than just a territorial issue; it is a significant political obstacle to the two-state solution. If completed, the settlements would bisect the West Bank, threatening the possibility of a contiguous, viable Palestinian state. The newly proposed Israeli settlements would further complicate the question of a sovereign territory for the Palestinian people.

About the authors
Preetha R and Brighty Ann Sarah at postgraduate students at Stella Maris College, Chennai.

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