The Financial Times on Tuesday reported that US President Donald Trump is pressuring Egypt and Jordan to accept displaced Palestinians from Gaza, suggesting the US could use financial aid as leverage. The proposal has triggered backlash from Palestinians and Arab leaders, who view it as undermining Palestinian statehood ambitions.

Speaking aboard Air Force One, Trump said he had spoken with Egyptian President Abdel Fattah al-Sisi about resettling Gazans. "I wish he would take some. We helped them a lot, and I'm sure he'd help us," Trump said. "He's a friend of mine. He's in a very rough part of the world, to be honest. As they say, it's a rough neighbourhood. But I think he would do it, and I think the King of Jordan would do it too."

Egypt denied such a conversation occurred, and both Cairo and Amman have firmly rejected the proposal, arguing it threatens Palestinian statehood and poses domestic risks. Jordanian Foreign Minister Ayman Safadi stated, "The solution to the Palestinian issue lies in Palestine," while Egypt's state-owned Al-Ahram declared: "Egypt [speaks] as one man: The people reject displacement and support efforts to protect national security as the Palestinians write their 'epic of return'."

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Regional and Security Concerns

The proposal has drawn criticism beyond Egypt and Jordan. Palestinian leaders and the UN warned the plan could amount to "ethnic cleansing." Analysts note Egypt fears an influx of Palestinians in Sinai could escalate militant activity. "A massive influx of Palestinians would raise fears of rekindling the insurgency [by an ISIS affiliate] in the Sinai," said Michael Wahid Hanna of the International Crisis Group.

Jordan, hosting over 2 million Palestinians, faces economic and political pressures. Already burdened by Syrian refugees, the country relies on $1.45 billion in annual US aid. Analysts warn US pressure to accept more displaced Palestinians could destabilize Jordan further.

Read more: Smotrich says working on implementing Trump plan to expel Gazans

On the other hand, Egypt receives $1.3 billion annually in military assistance, a cornerstone of its ties with Washington since the Camp David Accords. Analysts suggest Trump could use this aid as leverage despite its exemption from the US foreign assistance freeze.

Sanam Vakil of Chatham House described Trump's approach as a negotiation tactic. "This a classic Trump negotiation tactic, coming in with an extreme position in order to…get somewhere in the middle," she said, adding the demands raise "real existential" concerns for both countries.