Israeli Prime Minister Benjamin Netanyahu restated his rejection of President Trump's latest 15-point Gaza plan in televised remarks to his cabinet on Sunday, even as Israel's military has largely halted attacks in the territory under US pressure. Netanyahu is publicly rejecting the plan while privately complying with what Washington asked, and the US appears content with the political theatre as long as restraint on the ground holds. The dynamic illustrates how the Trump administration has been working multiple pressure points across the region simultaneously, treating the Gaza track as interconnected with its broader Iran containment strategy rather than as an isolated file.

Netanyahu told his cabinet he rejects Trump's 15-point Gaza plan and will not withdraw troops until Hamas is fully disarmed, covering both heavy and light weaponry alike. He faces mounting domestic pressure ahead of an October 27 election, caught between far-right ministers opposed to any concessions and Trump, who is pushing his 15-point roadmap to end the war. His coalition depends on parties led by figures like Smotrich and National Security Minister Itamar Ben-Gvir, who have repeatedly threatened to collapse the government if Netanyahu concedes too much.

Israel scaled back attacks in Gaza from Monday following a meeting between Netanyahu and Trump's Gaza envoy Nikolay Mladenov. A source familiar with Israel's position said the military would now only act against immediate threats rather than continue near-daily targeted strikes. Hamas official Basem Naim told Reuters the group remains committed to the roadmap agreed in Cairo and called on mediators and Washington to press Netanyahu not to obstruct the process for domestic political reasons. Egypt and Qatar, which have served as principal mediators throughout the conflict, have been pushing both sides to adhere to the framework. Far-right Finance Minister Bezalel Smotrich backed Netanyahu's line, saying Israeli forces cannot withdraw from Gaza while Hamas remains armed.

A senior US official told Axios the White House is not troubled by Netanyahu's public rejection, characterizing it as part of Israel's election season. The official said Washington has no issue with the rhetoric as long as Netanyahu keeps restraining attacks on Gaza as agreed. According to the official, Netanyahu had privately promised Trump envoy Jared Kushner he would give the plan a chance despite his skepticism, and Israeli forces have since been gradually pulling back toward the so-called Yellow Line while the US and mediators press Hamas to begin disarming.

The episode carries added weight for the broader US-Iran standoff. Hamas's backing from Iran — which has provided funding, weapons, and training to the group — ties the situation directly to the wider regional conflict already centred on the Strait of Hormuz. A genuine collapse of the Gaza ceasefire would give Tehran a pretext to harden its posture across every front simultaneously, Hormuz included, at a moment when the IRGC has already declared the strait a theatre of war.

Netanyahu's public rejection, combined with Israel's continued restraint on the ground and Washington's relaxed reaction, points to a managed standoff rather than a real rupture, which is mildly supportive of keeping the Middle East risk premium in oil contained for now. The key variable to watch is whether Israel's troop pullback toward the Yellow Line and Hamas's disarmament actually proceed. Any stall or reversal there would be read as a second front opening alongside Hormoz, arguing for a firmer floor under prices, while continued progress would reinforce the case for the risk premium to keep easing.

Earlier developments in the Hormuz crisis include reports that Iranian missiles struck a tanker off Oman in Hormuz, Iran's vow that Hormuz stays shut until the US meets its demands, and Trump's remark: "we are low keying it" as the Strait of Hormuz diplomatic situation continues.

Washington's relatively relaxed posture toward Netanyahu's comments suggests it currently views the friction as manageable rather than a serious threat to the broader de-escalation effort.