Last Gaza Hostage Retrieved: Trump Peace Plan Phase Two Begins

251 hostages taken. One final body recovered. Israel announced Sunday it has retrieved the remains of Master Sergeant Ran Gvili, the last hostage held in Gaza since the October 7, 2023 Hamas attack. With this final piece of the hostage crisis resolved, Donald Trump's Gaza peace plan can now move into its most challenging phase.

The Last Piece Falls Into Place

The Israel Defense Forces (IDF) found Gvili's body in a cemetery near Gaza City after clarifying intelligence gathered over the weekend. The 24-year-old Yamam special forces commando was killed during the initial October 7 battle, his body then taken into Gaza.

Prime Minister Benjamin Netanyahu called it "an extraordinary achievement," declaring: "We promised—and I promised—to bring everyone back. We brought them all back, down to the very last captive." The ceasefire agreement required Hamas to return all hostages within 72 hours, but Gvili's location had remained unknown, blocking progress to Phase Two.

Over the past two years, 20 living Israeli hostages and 27 bodies of Israeli and foreign hostages were returned, while Israel released 250 Palestinian prisoners and 1,718 Gaza detainees. Israel's military campaign in response killed 71,660 Palestinians, according to the Hamas-run health ministry.

Phase Two's Daunting Task List

Trump's peace plan Phase Two centers on Gaza's reconstruction and complete demilitarization. The agenda includes disarming Hamas and all Palestinian militant groups, deploying an as-yet unconstituted International Stabilization Force (ISF), and the progressive withdrawal of Israeli forces.

But the reality on the ground tells a different story. Hamas maintains influence across Gaza, the composition of the international force remains unclear, and over 2 million Gazans face immediate survival and resettlement challenges.

Hamas spokesman Hazem Qassem said Gvili's recovery "confirms Hamas's commitment to all the requirements of the ceasefire agreement." Yet the group's stance on disarmament remains defiant, suggesting tough negotiations ahead.

International Chess Moves

With the hostage chapter closed, Israel agreed to reopen the crucial Rafah crossing with Egypt—essential for humanitarian aid and reconstruction materials. The Trump administration has already launched a technocratic government in Gaza and announced seven more countries joining the Board of Peace.

However, critical questions remain unanswered: Who will fund the massive reconstruction effort? How will security be guaranteed without Israeli forces? And can Palestinian governance structures emerge from the rubble?

Middle East experts emphasize that success requires strengthening the Palestinian Authority and active participation from Arab states. Investment commitments from Gulf countries like Saudi Arabia and the UAE could prove decisive.

The Bigger Picture

Gvili's recovery marks more than the end of a hostage crisis—it's a test case for Trump's broader Middle East strategy. The administration is betting that economic reconstruction can create stability where military force failed.

Yet Gaza's 140 square miles contain layers of complexity that go beyond infrastructure. Generational trauma, competing political factions, and deep-rooted grievances won't disappear with new buildings and international peacekeepers.

The international community now faces a choice: commit substantial resources to a long-term Gaza reconstruction, or risk watching another cycle of violence emerge from the ruins.