I'm not American, but my read of this announcement looks something like:
* The Trump Administration doesn't believe in the two state solution stalemate.
* They have leverage over The Netanyahu Administration in Israel due to the ongoing military support needed.
* The Netanyahu Administration wants to incorporate Gaza into Israel as also doesn't believe in two state solution but cannot do so without repercussions.
* US could take over Gaza as the West won't sanction it, China needs to sell to it, RoW not an issue.
* Trump wants US to take over Gaza, use US corps and workers to rebuild paid for by Israel, and then sell back to Israel at a later time.
I don't agree with that position but I think that's what the deal looks like overall.
They are the US's proxy against Iran in the Middle East, primarily, which makes it a strategic relationship. Addition, based on the 2022 data, the US imported $21BB from Israel and had a trade deficit of ~$7BB.
If I have to hire a hitman to take out my mistress I'm going to just opt to not have a mistress. I guess we will have never ending reasons for needing a proxy against Iran?
* The Trump Administration doesn't believe in the two state solution stalemate. * They have leverage over The Netanyahu Administration in Israel due to the ongoing military support needed. * The Netanyahu Administration wants to incorporate Gaza into Israel as also doesn't believe in two state solution but cannot do so without repercussions. * US could take over Gaza as the West won't sanction it, China needs to sell to it, RoW not an issue. * Trump wants US to take over Gaza, use US corps and workers to rebuild paid for by Israel, and then sell back to Israel at a later time.
I don't agree with that position but I think that's what the deal looks like overall.