Gaza, Iran, trade: What to watch in Trump-Netanyahu meeting

Israeli Prime Minister Benjamin Netanyahu’s third visit to the White House this year marks a high point in his relationship with President Trump, coming on the heels of coordinated strikes on Iran that both have touted as setting back Tehran’s nuclear ambitions. 

The Monday meeting also comes as Trump has called for Israel’s courts to drop a series of corruption cases against Netanyahu, as Israel has reportedly agreed to a U.S. proposal for a 60-day ceasefire with Hamas in Gaza, and days before Trump’s 17 percent “reciprocal” tariffs on Israel are set to kick in on July 9.

Trump’s Oval Office meetings with world leaders have been full of surprises, and Netanyahu’s previous visits are no exception. 

His first visit, in February, was marked by the jaw-dropping moment of Trump announcing his idea of the U.S. taking over the Gaza Strip and transforming it into the “Riviera” of the Middle East. 

When Netanyahu traveled to the White House again in April, he sat silently as Trump announced the U.S. would begin direct talks with Iran. Netanyahu had planned to strike Iran by the end of April but conceded to give the president 60 days for diplomacy. Israel launched its strike against Iran on day 61.

These are the three critical issues at the top of the agenda for visit number three:

Israel-Hamas war at a 'crossroads' 

Trump said on Tuesday that Israel had agreed to the terms of a 60-day ceasefire in the Gaza Strip, though Hamas has continued to push for a more permanent deal. 

Details of the U.S. proposal are unclear, but it likely includes the scale-up of humanitarian aid into the enclave, where Palestinians are facing a catastrophic humanitarian crisis, and Israel's release of Palestinian prisoners in exchange for remaining Hamas hostages. 

The U.S.-designated terrorist group is believed to hold 10 living Israeli hostages and 18 bodies of those Hamas kidnapped from southern Israel during the attack on Oct. 7, 2023. 

On Thursday, Trump met with freed Hamas hostage Edan Alexander at the White House.

Israel’s ambassador to the United Nations, Danny Danon, told reporters that Israel estimates there are as many as 20 living hostages and 30 bodies. He said the latest U.S. proposal marked a “crossroads” in the war. 

“There are two ways, either you increase your involvement and you try to bring this war to an end — it’s going to be hard, it’s going to be painful,” Danon said. “Or you take the other direction, which is basically agreeing to a ceasefire or end of a war without insisting of getting Hamas out, which I don’t think the government, today, is there.”

A group of Israeli and Palestinian peace activists will seek to present an alternate message on Capitol Hill during Netanyahu’s visit. 

Calling themselves the Phoenix Project, the activists from the West Bank and Gaza Strip are lobbying U.S. lawmakers to support their framework for a long-term peace agreement that includes support for a Palestinian state.

“Netanyahu promises more death. He promises more war. Our vision proposes safety and equality for all of us,” said Josh Drill, co-author of the framework. 

Drill, in a phone call with The Hill, said the group of 25- to 35-year-old activists represents the next generation of regional leaders.

“We'll be meeting with members of Congress and senators from both sides of the aisle, and we really want to start a conversation about peace with them. This is not just a one-time conversation. We want to have relationships that will help us create peace in our region,” he said. 

Way forward on Iran

Netanyahu said a major priority for his trip to Washington is to build on the success of the strikes against Iran in coordination with the U.S. Danon said Israel is supportive of U.S. diplomatic outreach to Iran amid the Trump-brokered ceasefire, which ended the 12 days of war between the countries. 

Trump said he is allowing China to purchase oil from Iran to help Tehran rebuild, and he added he doesn’t think it’s necessary to reach a new nuclear deal. Still, his most trusted negotiator, Steve Witkoff, is reportedly preparing for meetings with Iran’s foreign minister next week.

Danon said Israel’s position is that Iran must submit to a rigorous inspection protocol of its nuclear activities. Iran on Monday approved legislation suspending its cooperation with the United Nations nuclear watchdog, the International Atomic Energy Agency, but the Islamic Republic had long been criticized for obscuring and blocking inspectors under existing agreements. 

“Ideally, having a strong mechanism with sanctions involved, make sure they are not rebuilding capabilities, that is the preferred option,” Danon said.

“If that will not work, then we have the ability — and we proved our intelligence capabilities ... and make sure they’re not getting to a point that we can’t tolerate.”

While Israeli officials want to see Iran’s leaders fall from power, Danon said regime change is not the goal of Israeli operations. 

“It’s up to the Iranian people to decide how to do it and when to do it,” he told reporters. 

'Special treatment' on a trade deal

Like dozens of countries, Israel is facing a July 9 deadline to avoid Trump’s “Liberation Day” tariffs, which were set at 17 percent for Israel.

While Israel had the distinction of being one of America’s first free-trade partnerships, under a deal signed in 1985, that didn’t spare the country from Trump’s trade wars. 

Reaching a fair deal will be essential for Israel’s recovery after two years of expanding wars, said Dan Catarivas, president of the Federation of Binational Chambers of Commerce in Israel and former deputy director general for international affairs at the Israeli Ministry of Finance.

Catarivas said the Israeli government would like to see Trump provide Israel with “special treatment,” given the country’s small size and historically close ties on security, and because Israeli exports pose little to no threat to America’s economy.

“I think it is in the interest of the U.S. to have an Israeli economy that is flourishing and is healthy and developing and resilient,” he said, adding that coming in at or lower than a 10 percent tariff would signal a win. 

Catarivas said Israel can seek to ratchet down that figure by dropping barriers to entry to American exports and harmonizing industry standards with the U.S. related to cars, electronics and food weight.

Catarivas also pointed to things that fall outside of explicit trade, like joint research and development projects that build on Israel’s high-tech expertise. He pointed to the development of the Iron Dome missile defense system as an area where Israeli research and American production successfully came together. 

“I think what we’d like is special treatment because we are in a special situation, and our relations with Americans are special,” Catarivas said. “It’s not like with Vietnam or Thailand, or other European countries; they don’t have the same intimacy of relations with the U.S. That’s the expectation on our side.”