Is Israel annexing more than half of Gaza?

The ambiguous meaning of Israel’s new yellow line

A general view of a concrete block marking the "Yellow Line" drawn by the Israeli military in Bureij, central Gaza Strip, on 4 November 2025.
BASHAR TALEB / AFP / Al Majalla
A general view of a concrete block marking the "Yellow Line" drawn by the Israeli military in Bureij, central Gaza Strip, on 4 November 2025.

Is Israel annexing more than half of Gaza?

Early in December, Israel’s military chief raised the alarm of the international community, saying the so-called yellow line in Gaza is the country’s new boundary with the enclave. “We will not allow Hamas to reestablish itself. We have operational control over extensive parts of the Gaza Strip, and we will remain on those defence lines,” Israeli army chief of staff, Eyal Zamir, told troops in Gaza. “The yellow line is a new border line, serving as a forward defensive line for our communities and a line of operational activity.”

Israeli troops have withdrawn east of this line, which was drawn as part of the US-brokered ceasefire plan last October, but not any further. The result is a Gaza split in two, with a buffer controlled by the Israeli army, surrounding and sealing the inner section. The Israeli military has already laid out concrete bollards to mark some stretches of the line, according to a report by the Guardian. The area under Israeli military control amounts to more than half of the original territory of the strip, with estimates varying from 53% to 58%.

Under US President Donald Trump’s 20-point peace plan, Israel will not occupy or annex Gaza but progressively hand over the territory it occupies to an international stabilisation force, which will be deployed at a later stage. The plan ultimately calls for Hamas to disarm and have no role in the future government of Gaza and for Israel to withdraw completely from the territory.

But many fear that the frozen conflict will go on indefinitely, with a de facto partition of Gaza into an area controlled by Israel east of the yellow line, where it has been cultivating anti-Hamas Palestinian groups, and an area controlled by Hamas where reconstruction won’t take place. “It’s right from the kind of typical Israeli playbook of ‘we’ll take as much as we can while there’s a process ongoing that isn’t delivering much.’ Then when it comes down to negotiations, there’s less to negotiate over,” said Sam Rose, the acting director of Gaza affairs at the UN Relief and Works Agency for Palestine Refugees (UNRWA), in an interview with Foreign Policy.

The area east of the yellow line controlled by Israel creates a buffer with the rest of Gaza, which Israel says it needs for the security of the communities living in the south of the country. However, it deprives the rest of the strip, where most of its population of over 2 million people is now crammed, of a border with Egypt, isolating it even more than it was before the war triggered by the October 7 2023, Hamas attack.

AFP
A camp for displaced people in Rafah, southern Gaza Strip, on 30 January 2024.

What’s more is that it contains most of the agricultural land used by Palestinians in Gaza before the war, producing some of the food consumed by residents and even some crops it exported, the UN said. “If that land is unavailable permanently, it does have major implications for Gaza’s economy,” Rose said.

Holding on to that territory may be just part of Israel's negotiation strategy, several experts said. “If they pull back a bit, then they’ll seem to have compromised on something, when actually this was not anything that was up for negotiation anyway, so I think some of it is just the way Israel does things and the way it puts things out there,” Rose said.

Many fear a frozen conflict will go on indefinitely, with a de facto partition of Gaza into an area controlled by Israel east of the yellow line, where it has been cultivating anti-Hamas Palestinian groups

On 14 January, the United States said the second phase of the ceasefire deal was due to begin, under which Israel is expected to withdraw from additional parts of the Strip. But there was no mention of a timeline for the withdrawal, which is linked to the "demilitarisation" of Hamas under October's ceasefire deal.

The following day, Trump issued a fresh ultimatum to Hamas, calling for the group's disarmament amid the beginning of the second phase, even as key elements of the first phase appear to be unfulfilled, and demanded the return of the remains of the last Israeli hostage still believed to be held by the group. 

Meanwhile, Israel is suspected to have further increased the portion of the strip under its control by arbitrarily moving the blocks, which are supposed to mark the post-ceasefire line, deeper into Gaza in several places, according to the BBC.

AFP
Israeli Prime Minister Benjamin Netanyahu stands before a map of the Gaza Strip, telling viewers that Israel must retain control over the "Philadelphi corridor," a strategic area along Gaza's border with Egypt, on 2 September 2024.

"I wouldn't be talking about de facto annexation, because things are too fluid at this junction," said Michael Wahid Hanna, US programme director at the International Crisis Group. "I think it's reflective of Israeli maximalism. They continue to push the envelope in terms of how aggressive they are in this ceasefire phase."

Hanna added that the yellow line is symptomatic of Israel's posture at this stage. "It's very clear that there isn't going to be progress on fulfilment of ceasefire terms unless there's a very strong US counterweight and pressure on the parties to move forward," he said. Any long-term Israeli plan to continue to occupy the territory beyond the demarcation line would mean that Gaza would never be allowed to reconstitute itself as a functional society, he said. "I think it really cuts to the core of the viability of Gaza as one of the territories in which Palestinians can live," Hanna said.

Far-right groups in Israel have been loudly pushing for the resettlement of the strip since the early months of the war against Hamas, advocating for the expulsion of Palestinians. The occupation of the area beyond the yellow line could amount to political posturing by the government to appease its more extremist wing, which includes several Israeli West Bank settlers. The support of these parties is vital for Netanyahu to remain in government.

On 18 December, two groups of activists from the Nachala settlement organisation crossed into Gaza, marking the latest bid by ultranationalists to anchor a Jewish presence in the enclave, the Times of Israel reported. They planted an Israeli flag at a site that the organisation claimed was near the former settlement of Morag in the southern part of the territory, before being escorted out of the enclave by the Israeli army.

In the summer of 2005, then-Israeli Prime Minister Ariel Sharon withdrew the army and approximately 8,000 Jewish settlers from the interior of the Gaza Strip after concluding that maintaining and defending settlements there wasn't worth the cost. "It is precisely now that we must say in a clear voice what is obvious: Gaza belongs to the people of Israel," said Nachala leader Daniella Weiss. "We must begin to settle in Gaza now."

REUTERS/Ramadan Abed
Palestinians walk past rubble as they return to their neighbourhood, following Israeli forces' withdrawal from the area, amid a ceasefire between Israel and Hamas in Gaza, in Khan Younis, in the southern Gaza Strip 11 October 2025.

The ultimate consequence of an indefinite occupation or even annexation of land in Gaza demarcated by the yellow line could be that the rest remains in ruins and, therefore, largely uninhabitable, forcing Palestinians to leave. However, many in Israel rule out that the area will end up being annexed. Holding on to it is necessary at this stage for security reasons, many Israelis argue, although it isn't clear for how long the army will withdraw from this part of the strip.

"The American administration is trying to pressure Israel to continue to the second phase (of the cease-fire plan), which means a further withdrawal of Israeli forces for a new redeployment," said Kobi Michael, a senior researcher at the Institute for National Security Studies and at Misgav Institute, two Israeli think tanks.

Michael said Israel won't likely accept any, even partial, withdrawal until the body of the last Israeli hostage is released from Gaza and before there is any progress with the disarmament of Hamas, as required by the ceasefire plan. "As long as Hamas is there, we will be there. There won't be any annexation of that part of the strip or others. The purpose is to ensure that Hamas will not be able to reconstitute itself in this area, because this will eventually be a direct threat on the Israeli kibbutzim and the towns along the border," he said.

Against the background of a very fragile ceasefire plan for Gaza that struggles to move forward, a prolonged occupation of part of the strip by Israel risks being a major hurdle in negotiations. The establishment of an international stabilisation force replacing Israeli military forces on the ground is a key plank of Trump's plan. Without it, the future of Gaza will hang indefinitely in the balance.

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