Why Trump is so interested in Middle East?
5mins read: Trump's Gaza Proposal: A Strategic Move to Broker Iran Deal and Support West Bank Annexation
Hey Small Biters,
In February 2025, President Donald Trump proposed a controversial plan for the Gaza Strip, suggesting that the United States should "take over" the territory, remove its population of over 2 million Palestinians, and transform it into a Mediterranean resort destination. He even shared an AI-generated video depicting himself and Elon Musk celebrating in a fictional "Trump Gaza," featuring a golden statue of the president. While this proposal is widely regarded as impractical and politically unfeasible, it appears to serve as a strategic maneuver to advance two significant objectives in the Middle East.
The first objective is to secure a nuclear agreement with Iran. Despite imposing new sanctions on Iran earlier in the month, President Trump expressed a desire to negotiate, stating, "I would love to be able to make a great deal, a deal where you can get on with your lives." Iran's current weakened position, due to regional setbacks and economic challenges, may make it more amenable to negotiations. A potential deal could involve Iran agreeing to limit its nuclear and military capabilities in exchange for economic relief and security assurances.
The second objective involves addressing potential backlash from the Israeli right and its conservative American supporters regarding any U.S.-Iran agreement. To mitigate such concerns, President Trump hinted at supporting the expansion of Israel's formal control over parts of the West Bank. In a recent press conference, he mentioned that his administration would "be making an announcement probably on that very specific topic over the next four weeks." This move could be seen as an attempt to appease pro-Israel factions by endorsing policies that align with their interests.
By juxtaposing the extreme proposal for Gaza with the more attainable goal of West Bank annexation, President Trump appears to be shifting the Overton window—the range of acceptable political discourse—regarding U.S. Middle East policy. The Gaza proposal, though unlikely to be implemented, serves to desensitize the public and policymakers to aggressive territorial strategies, thereby making the West Bank annexation seem more palatable in comparison. This tactic reinforces narratives that undermine Palestinian territorial claims and could reshape the framework of future negotiations.
Iran's current vulnerabilities further position it as a candidate for negotiation. The country has suffered significant losses to its regional influence, with key allies and proxy groups facing defeats. The downfall of the Syrian regime in December removed a critical ally, and Iran's proxies, such as Hezbollah and various militias in Iraq and Syria, have been weakened. These developments have diminished Iran's capacity to project power and defend its interests, potentially making it more receptive to a deal that offers economic and security incentives.
In summary, President Trump's provocative proposal for Gaza appears to be a strategic ploy designed to facilitate a nuclear agreement with Iran while placating pro-Israel constituencies through potential West Bank annexation. This approach not only aims to reshape the geopolitical landscape of the Middle East but also seeks to secure President Trump's legacy as a dealmaker capable of redefining longstanding international conflicts.
US Stocks
Stocks tumble, S&P 500 erases 2025 gains
The S&P 500 and Russell 2000 tumbled 1.6% while the Nasdaq 100 dove 2.8% on Thursday. The benchmark US stock index is now negative in 2025.
Stocks faced intense selling pressure after President Trump committed to putting 25% tariffs on imports from Canada and Mexico and 10% on China beginning March 4. However, a basket of tariff-exposed stocks managed to outperform the Magnificent 7 by about 1%, suggesting the losses were more deeply centered around the inability of Nvidia’sNVDA $121.15 (-8.57%) results to rejuvenate the AI trade or momentum stocks.
The formerly $3 trillion chip designer reported revenues and earnings that exceeded expectations, but traders dumped the stock en masse anyway. Tesla’sTSLA $282.29 (-3.04%) abysmal run continued, with the stock now down at least 1.5% in six straight sessions for the first time since the depths of the Covid panic in March 2020. Amazon’sAMZN $208.63 (-2.58%) new quantum chip was overshadowed by all the profit-taking in the megacaps, as were reports of MetaMETA $660.69 (-2.23%) teaming up with Apollo to finance data centers.
What Else Are We Biting
SEC says meme coins are not securities.
Federal job cuts disrupt a stable retirement picture for many workers, including Black Americans.
Trump’s CFPB lets Capital One off the hook for $2 billion.
Biting Fact Of The Day
Tesla’s market cap fell below $1 trillion and is nearly back to where it was before the election.
Trump's Gaza Proposal: A Strategic Move to Broker Iran Deal and Support West Bank Annexation