Cairo warns of consequences if Trump follows through on halting American aid over Gaza refugee resettlement.
The Egyptian-Israeli peace treaty is now on shaky ground. Cairo has issued a stark warning that if U.S. President Donald Trump makes good on his threat to cut aid over Egypt’s refusal to accept displaced Palestinians from Gaza, the decades-old peace deal with Israel could be in jeopardy.
The fallout is already escalating. President Abdel Fattah el-Sisi has indefinitely suspended his meeting with Trump amid what is now the worst U.S.-Egypt diplomatic crisis in 30 years. Trump’s attempt to pressure Egypt and Jordan into taking in Palestinian refugees as part of his controversial Gaza reconstruction plan has backfired, strengthening Arab resistance rather than forcing compliance.
Egypt, the third-largest recipient of U.S. aid, has already begun preparing emergency measures to counteract the potential financial shock of losing its $2.1 billion annual package. Meanwhile, Jordan—another key U.S. ally and major aid recipient—is openly defying Washington’s demands. King Abdullah II has secured a strategic partnership with the European Union and continues to rally regional opposition to any forced Palestinian displacement.
Trump’s approach risks unraveling longstanding Middle Eastern alliances. Egypt and Jordan remain vital partners in regional stability, but their patience is wearing thin. If the U.S. withdraws aid, it could push Cairo and Amman toward alternative partnerships—potentially with adversaries of Israel and the West.
For Israel, the silence is deafening. While Netanyahu welcomes Trump’s vision, he risks destabilizing Israel’s two closest Arab allies. If Egypt follows through on its threat to reconsider its peace treaty, the entire regional security structure could be upended, with severe implications for Israel’s security and U.S. influence in the region.
Will Trump push forward with his ultimatum, or will Washington backtrack to prevent an irreversible geopolitical shift?
