Iran War Threatens Board Of Peace

Donald Trump’s signature Board of Peace has run straight into the war in Iran, slowing what little progress it had made since the president — and a phalanx of world leaders — heralded its creation last month.

So far, the board has set up its accounts at the World Bank and JP Morgan Chase, a Trump administration official said Tuesday. “We are currently working with countries that made the pledges to get them the wiring info,” added the official, who was granted anonymity because they were not authorized to speak to the press. Some two dozen member countries pledged more than $16 billionto the board in February, with the U.S. promising a $10 billion lion’s share.

But since then, the U.S.-Israeli strikes on Iran have brought about chaos that has reversed even the modest gains White House negotiating duo Steve Witkoff and Jared Kushner had been making.

When the Board of Peace was announced as part of the ceasefire the U.S. secured in October between Israel and Hamas, backed up with U.N. Security Council approval, it was meant to set the framework for rebuilding Gaza — and much more.

The charter of the board, according to a leaked copy, laid out a mission to build “peace in areas affected or threatened by conflict.” And, with the close attention of Witkoff and Kushner, Israel and Hamas exchanged hostages and prisoners, and Israel opened the Rafah border crossing between Egypt and Gaza.

Now, the U.S.-Israel strikes on Iran appear to be getting in the way. Indonesia’s president threatened to quit if the board doesn’t benefit Palestinians, Reuters reported, and the country’s foreign minister said all talks about the board had been stopped due to the Iran war. That could put in jeopardy the 8,000 troops Indonesia committed to an international stabilization force.

The Trump administration official said talks with Indonesia continue and that “the Board of Peace is committed to providing stabilization and prosperity to the people of Gaza.”

To be sure, other countries, for example, Azerbaijan and Jordan, said they were still committed.

But the Board of Peace’s animating force — rebuilding Gaza — remains far from fulfilled. A key condition for reconstruction is disarming Hamas, the militant group that attacked Israel in 2023, but little has been announced on that front.

Israel has also closed the Rafah border crossing citing the war with Iran. That has rolled back a milestone in the ceasefire plan and led to a drop in aid getting into the enclave. Asked about the border, the administration official referred POLITICO to the Israeli government.

COGAT, the Israeli military body that oversees civilian affairs in Gaza, said: "At this stage, the Rafah Crossing remains temporarily closed due to the missile threat. It will reopen as soon as the security situation allows."

Zaha Hassan, who advised the Palestinian negotiating team during its bid for U.N. membership, noted that the Board of Peace’s mandate with the Security Council expires at the end of 2027.

“If you’re saying the Board of Peace is the only way, and the Board of Peace can’t even influence Israel on its obligations, it doesn’t look very good for its prospects, especially given its sunset,” said Hassan, now senior fellow at the Carnegie Endowment for International Peace.

“There’s clearly some backsliding on what little progress may have been made,” said David Schenker, who served as assistant secretary of State for Near East Affairs in the first Trump administration and is now a fellow at the Washington Institute for Near East Policy.

Schenker added that the short bench of Trump officials empowered to make foreign policy decisions is likely exacerbating the problem. “There’s a number of issues, in addition to Gaza, that have fallen off the agenda temporarily given the prioritization of Iran and the war.”

Trump continues to put his faith in Witkoff and Kushner, saying the pair are “doing a great job.” The two had been set to visit Israel Tuesday, but postponed the trip.

Witkoff, for his part, has offered a rosy view that the war with Iran could lead to broader regional cooperation. Speaking Tuesday on CNBC, he said Gulf countries facing Iranian drones and missiles were “coming out of the woodwork, calling us, multiple, multiple reach-outs for countries who want to be a part of the Abraham peace accords.”

If the Board of Peace fails on its broader mission to disarm Hamas and rebuild the enclave, the stakes are high. Palestinian journalist Mohammed R. Mhawish observed this week in The Nation that the regional turmoil sparked by the strikes on Iran had left Gaza "more exposed to Israeli escalation than at any point since October 2023.”

Asked about Hamas disarmament in an interview with BILD, which like POLITICO belongs to the Axel Springer Global Reporters Network, Israeli President Isaac Herzog said, “I would not now put this as the top priority. ... Everybody knows that Israel is ready to do the job if needed, but let’s give it to others to do. There’s now the technocrats' government. That’s their test.”

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