Israel rejected a U.S.-backed peace plan for Gaza Sunday, with Prime Minister Benjamin Netanyahu saying that Israel will not withdraw from the enclave until Hamas has been “genuinely disarmed.”

In dismissing the 15-point plan drawn up by U.S. President Donald Trump’s Board of Peace, Netanyahu also said that as long as he is prime minister, “a Palestinian state will not be established” in Gaza or the West Bank.

The peace plan announced by the White House at the end of July would require Hamas to disarm and relinquish its governance in Gaza, while Israel would be required to withdraw its military forces from the territory.

Hamas has said that it would begin disarming, but in recent days an Israeli official said the country still had “serious security concerns.”

The rejection is a blow to peace negotiations the Trump administratoin has been brokering since September. The U.S. president had described the plan, now rejected by Israel, as a “critical step towards Gaza finally being governed by a new Palestinian government” and giving Israel “the security it deserves.”

Israel appears unlikely to pull back significant forces or make other concessions ahead of legislative elections scheduled for October. Netanyahu faces a tough reelection battle, with his far-right coalition partners urging him to keep up the pressure on Hamas and leave forces in Gaza. Opponents also accuse him of failing to prevent the Oct. 7, 2023, attack when Hamas-led militants attacked Israeli communities, killing about 1,200 people, mostly civilians, and taking 251 others hostage. Israel responded with a punishing military offensive that has killed more than 73,000 people, according to the Gaza Health Ministry.

Netanyahu said on Sunday that he is now in discussions with U.S. officials about how to move forward. “They have ideas, some of which are acceptable to us and some of which are unacceptable to us, and we know how to stand up to these things,” he said.

Brussels is bracing for an unusual fight between the EU’s smallest country and a British ex-footballing legend.

Peter Shilton, the England goalkeeper who conceded the “Hand of God” goal from Diego Armando Maradona in 1986, has started a new life as an anti-gambling advocate after overcoming a decades-long addiction.

Despite being a diehard Brexit supporter, he’s become the poster boy of the European Parliament’s push to tax online betting in a bid to raise some much-needed funds to finance the bloc’s next €2 trillion budget.

But the campaign has run into strong opposition from Malta. The tiny island in the Mediterranean Sea, with a population of just over half a million people, is home to a burgeoning betting sector. It says that higher taxes will cripple its gambling industry, boost illegal operators and drive firms outside the bloc.

“[Malta] will not accept the introduction of any EU-level taxes designed to sustain the bloc’s spending,” the country’s Prime Minister, Robert Abela, told the Maltese Parliament in June.

But Shilton, who lost more than £1 million in betting on horse racing over 45 years and now runs his own gambling addiction charity, dismisses the arguments by Malta and the gambling lobbies as “window dressing.” He’s in favor of higher taxes as he wants to shrink advertising revenue that is used to lure in new gamblers.

“Deep down they’re after everybody’s money. Simple as that,” he told POLITICO during a visit to Brussels in June.

The topic has split the EU’s 27 governments, pitting gambling-heavy Southern European countries against their more supportive Western European peers, led by France. Capitals are already fighting even though the Commission hasn’t yet issued a formal proposal for the possible tax, which would ultimately need to be unanimously approved by governments.

It’s one of numerous budget battle lines being drawn, with Ireland — which is steering the talks as chair of the rotating Council presidency — set to restart negotiations to facilitate an overall deal on the EU budget before the end of the year.

That’s no mean feat given Dublin’s task to mesh competing spending priorities into a single budget — financing everything from farmers’ subsidies to foreign aid — that is acceptable for each of the EU’s 27 governments.

National capitals will have to unanimously approve new EU-wide taxes — known as own resources — to pay for soaring defense spending and post-Covid debt repayments if they want to avoid drastically increasing national contributions to Brussels.

Supporters of the gambling levy point to the fact that it would rake in over €13 billion throughout the next budget cycle and — for some, more importantly — address a serious public health issue. An estimated 80 million adults globally have experienced a gambling addiction, according to experts.

“We look on it [gambling] as an illness. It’s something that’s inborn in you and that can be ignited,” Shilton said.

Malta’s game plan

Malta has invested heavily in the gambling industry — including lotteries, betting and casinos increasingly operating online — which now accounts for around 12 percent of its gross domestic product.

These firms have relocated to Malta because of its light-touch licensing regime, business-friendly tax regime and balmy weather.

The country is “as dependent on the online gambling industry as Germany is on cars,” said an EU diplomat, granted anonymity to speak freely.

While gambling firms need local authorization to operate in most other European countries, securing the Maltese license is crucial to access banking services and gain a foothold in the EU market.

Malta-based firms dominated the German and Austrian online gambling markets before national regulators cracked down. This has prompted the Maltese government to refuse to recognize some court rulings and sanctions issued by other EU countries against its gambling firms.

Given its influence, it is hardly surprising that the gambling industry has found a friendly ear among Malta’s politicians in Brussels.

The Maltese president of the European Parliament, Roberta Metsola, last year gave the opening speech at an international gambling conference in Rome that also featured Italian Foreign Affairs Minister Antonio Tajani.

“I’m more than a little proud that it started in my island home of Malta,” she said, referring to SiGMA, a Maltese events company that focuses on online gambling founded by Eman Pulis, a university friend of Metsola.

Betting lobbies say they oppose higher gambling rates on the grounds that they will fuel appetite for the illegal market, away from the grasp of EU rules.

“A higher tax would lead to worse odds for the customers … and it is relevant because access to the illegal markets in Europe is, obviously, one click away,” said secretary general of the European Gaming and Betting Association, Maarten Haijer.

Nicola Matteucci, an economist at the Università Politecnica delle Marche in Italy who has undertaken extensive research on the gambling sector, argued there is a “point where prices exceed a certain level and the demand [for gambling] diminishes. But it’s not as immediate as suggested by the industry.”

Matteucci said that most gamblers will be undeterred by slightly higher taxes and worse odds as they are not fully rational consumers.

Anti-gambling groups reason instead that higher taxes will reduce the sector’s spending on commercials, preventing would-be punters from getting sucked in to gambling in the first place.

“Higher taxes will therefore mean less gambling advertising overall and many people would regard that as a public benefit,” said Derek Webb, the founder of the Campaign for Fairer Gambling advocacy group.

Club Med joins Malta

Malta has joined forces with fellow Mediterranean countries — Italy, Portugal and Spain — to challenge the mooted tax which was first proposed by the Parliament’s socialist lawmaker Victor Negrescu, said four diplomats with knowledge of the discussions.

According to the European Commission’s estimates, seen by POLITICO, a 3 percent tax on the net turnover of the online gambling sector would generate an estimated €1.9 billion per year.

With its big online gambling market, Spain is expected to be among the biggest financial losers, should the tax go ahead. It is estimated to be on the hook for €414 million per year, almost a quarter of the total amount. That compares to a projected bill of €165 million per year for Malta— a disproportionality high amount for such a small country.

Portugal is also reluctant to back the levy. It fears that higher taxes would eat into revenue brought in by state-run betting and lotteries that is currently channeled to the charity Santa Casa da Misericórdia de Lisboa‘s healthcare and youth support programs, said a Portuguese official.

Meanwhile, given the relatively low uptake of online gambling, Italy’s misgivings have surprised anti-betting advocates. Rome is expected to pay a mere 7 percent of the proposed new levy — a significantly lower proportion than its regular EU budget contributions.

However, Prime Minister Giorgia Meloni’s Brothers of Italy party has previously been receptive to the gambling industry. Last year its MPs passed a resolution encouraging the reversal of a ban on professional football clubs advertising gambling firms.  

President Donald Trump on Saturday abruptly called off the “biggest attacks since World War II” against Iran in favor of negotiations, the latest in a seemingly endless series of whiplashes in the conflict.

The energy markets, which typically favor stability and predictability, responded with little more than a shrug.

Crude prices dipped slightly and gas prices remained steady. Even as the war stretches past the six-month mark and the midterms creep closer, Trump has been able to keep retail prices lower than experts say they should be through the sheer power of promises – which have yet to come through – of a swift end to the conflict. On Monday, he took that a step further, chastising the major oil companies for “making too much money” off global oil shortages as a result of the war.

“They better cut the retail price, the consumer price,” Trump said. “I’ll say it loud and clear. I’m not happy about it.”

But Trump’s ability to jawbone the markets may be diminishing at a critical time, three months before the midterm elections when control of Congress is hanging in the balance and his approval is sinking to new lows amid voter anger over cost of living concerns. It comes as global crude oil supplies are running low, the war threatens more energy flows, refiners are running out of spare capacity and the administration has few tools to keep gas prices low.

“Labor Day is the point where gas prices are baked into the election,” said Republican pollster Frank Luntz. “That last summer trip determines how voters evaluate their cost of living.”

And the higher gas prices come at a time when Trump repeatedly promises to escalate the war and then says it’s almost over a few hours or days later. That is starting to degrade his ability to cause price drops, a former adviser cautioned.

“His credibility has been a little bit shot,” said a former Trump adviser close to the White House, granted anonymity to avoid reprisal.

“The markets aren’t paying attention to him, they’re paying attention to what’s happening and, with respect to oil prices, it is a huge liability for the Republicans,” the adviser said.

Trump on Monday acknowledged that dynamic but expressed no urgency. He told reporters in the Oval Office that he was in no rush to end the conflict, though he acknowledged the need to fully reopen the Strait of Hormuz, through which about 20 percent of global energy supplies flowed before the war. He hinted at the midterm stakes for his party if the conflict does not end soon.

“I’m under no time constraint,” he said. “I don’t happen to be running, but a lot of very good Republicans are running.”

Trump’s ability to move the markets may be the only tool the administration has left to keep gas prices in check, said Rory Johnston, an oil market researcher and founder of the Commodity Context newsletter.

The Trump administration has drawn down the U.S. Petroleum Reserve to its lowest level since President Ronald Reagan’s first term. Oil majors are warning that the lack of refinery capacity could keep prices high for the foreseeable future.

“The market is so entrenched on this idea that eventually this will resolve by Trump deciding and ceding some ground on some issue, likely kind of even symbolic control of the Strait of Hormuz,” he said. “So the market’s going to be constantly watching for any sign that he’s shifting there.”

While experts continue to marvel at Trump’s ability to get the markets to bend to his whims, there is little consensus on when that power will dissipate.

Trump has “less credibility” in terms of moving markets, but it has not totally dissipated, Patrick de Haan, head of petroleum analysis at pricing service GasBuddy.

“I don’t think credibility completely goes to zero,” he said. “Hard to know though when it really bends.”

Trump’s push to keep energy prices low has also been buoyed by reduced Chinese oil imports, the successful rerouting of about 7 million barrels per day of Saudi Arabian crude through the Red Sea and releases from strategic petroleum reserves.

The administration released nearly 3 million barrels of oil from the Strategic Petroleum Reserve last week, bringing the reserves down to their lowest level since February 1983, according to Department of Energy data. About half of the 218.5 million barrels the Department of Energy said it would make available to the market have now left the salt caverns along the Gulf Coast.

As the summer driving season winds down, consumers expect gas prices to fall as well.

If the national average price of a gallon of gas is still above $4 by Saturday, de Haan noted, it will set a new record for the latest in the calendar year that prices are so high.

Ben Lefebvre contributed to this report.

Iran said Monday there are currently no direct talks with the United States, after President Donald Trump said negotiations would resume. Speaking at his weekly news conference, Foreign Ministry spokesperson Esmaeil Baghaei said Tehran’s current negotiations are limited to Oman and focused on reopening the Strait of Hormuz.

“Our negotiations are with Oman. We are focused on an understanding on a route that will ensure the safe passage of shipping through the Strait of Hormuz,” Baghaei said at a news conference, according to Iran’s state news agency IRNA.

He added that “the focus of the negotiations with Oman will be on this issue,” while “the issues related to Iran and the United States should be examined in the next stages to see where the situation will go.”

U.S. President Donald Trump said negotiations with Iran would resume Monday, after scrapping a planned military strike over the weekend. Speaking on Sunday, the American leader also refused to set a deadline for reaching a broader deal with Tehran.

“They knew the extent of the attack because they saw it forming. Now what we’re doing is we’re talking to them in the form of a negotiation. It begins tomorrow afternoon, and we’ll see,” said Trump, talking to reporters aboard Air Force One.

Asked whether he had imposed a deadline, the U.S. president responded: “Would I rather make a deal? I’m not looking to kill people because people die, a lot of people die, and we don’t want that.”

Trump’s remarks came on the heels of his early Sunday announcement on Truth Social that the U.S. was shelving a “massive attack,” after Iran and several Middle Eastern countries asked Washington to pause military action while negotiators worked toward an agreement. He said the framework under discussion included the “Immediate, Complete, and Total OPENING OF THE HORMUZ STRAIT” and an end to Iran’s nuclear threat, adding that Israel had also agreed to pause strikes.

Baghaei stated there would be “no significant change” in the situation in the Strait of Hormuz as long as Iran remained under what he described as U.S. military pressure.

PARIS — French President Emmanuel Macron’s office is courting Saudi cash to turn what was once the country’s biggest theme park into a manga-themed attraction.

According to half a dozen diplomatic, government and industry officials — all of whom were granted anonymity to speak candidly about a project one person characterized as “highly confidential” — the Elysée Palace has for several months held discussions with potential Saudi Arabian investors about the revival of Mirapolis, which closed in 1991 due to financial issues and has remained abandoned since.

A subsidiary of the Saudi Public Investment Fund called the Qiddiya Investment Company is at the center of the negotiations. The Saudi sovereign wealth fund recently opened an office in Paris.

According to one diplomat with contacts in the Gulf, the project would involve Saudi investors acquiring the former Mirapolis site, located some 30 kilometers northwest of Paris, with an eye to turning it into a theme park based on the popular manga series Dragon Ball.

Manga’s explosion in popularity has been felt keenly in France, where comic books and graphic novels are particularly popular.

The expected investment amount is not yet known, but several parties involved in the discussions suggest the deal could exceed €1 billion.

Saudi spinoff

The enterprise is part of Saudi Arabia Crown Prince Mohammed bin Salman’s Vision 2030 plan, which aims to diversify the kingdom’s oil-dependent economy with massive investments in tourism and leisure.

The Qiddiya Investment Company is overseeing the construction of the city of Qiddiya — a huge entertainment complex situated some 50 kilometers from Riyadh. The site is set to feature a Formula 1 circuit, a large tennis complex designed to host international tournaments, an amusement park operated by the American chain Six Flags and another theme park based on Dragon Ball.

According to three people familiar with the negotiations, the current plan is to build a smaller-scale Dragon Ball park where Mirapolis once stood.

The Elysée did not respond to questions about the project’s details, and Qiddiya Investment Company did not respond to a request for comment.

Qiddiya Managing Director Abdullah Aldawood met with Macron at the last two Choose France summits, which are events organized to attract foreign investment in the country. At the event, the summit’s press kit referred to, in cryptic terms, the signing of a memorandum of understanding aimed at “exploring a major tourism and entertainment project in France.”

A few weeks before Choose France this year, Aldawood met with Valérie Pécresse, president of the Île-de-France region, where the abandoned Mirapolis site is located. Aldawood also met with teams from Business France and Choose Paris Region — the region’s economic development agency — said a person who attended the meeting.

In a sign that the project is progressing well, late last month officials representing Île-de-France, which includes Paris, met with representatives from 10 key ministries, electricity grid operator RTE and public transport operator Île-de-France Mobilités to discuss the park’s possible revival.

The agenda for this meeting, which POLITICO saw, included discussions about the governance of the future project, transportation infrastructure, energy requirements and land acquisition issues. The gathering was chaired by Macron’s former Chief of Staff Georges-François Leclerc, who is now the prefect of the Île-de-France region.

“We had no information before receiving the invitation to the meeting, but we understand that the Elysée wants to step up the pressure on this issue,” said a ministerial adviser who took part in the discussions.

A fallen icon of the 1980s

Opened in 1987 by then-Prime Minister Jacques Chirac and with funding from Saudi billionaire Ghaith Pharaon, Mirapolis was intended to be France’s attempt at subverting U.S. dominance in the theme park industry.

But financial difficulties quickly mounted. Visitor numbers came in below expectations, and competition from EuroDisney further undermined the park’s business model a few years later. Mirapolis closed its doors for good four years later.

Discussions about Mirapolis’ manga successor have remained very limited. No one at the town hall in Courdimanche, the commune where Mirapolis is located, responded to requests for comment.

Rachid Temal, the Socialist Party senator who represents Mirapolis’ constituency, said he was not involved in the discussions and preferred not to comment at this stage.

Aurélien Taché, a member of Parliament from the far-left France Unbowed party who represents the area, said he was not kept in the loop either, and that he will be paying particular attention to “the environmental and social aspects of the project.”

Washington is again ratcheting up the pressure on the European Union with new tariff threats. Brussels’ response is strikingly different from a year ago: Don’t retaliate, don’t put on a show for Donald Trump, and don’t let him dictate the timetable.

Trump’s recent threat to “immediately initiate” a trade investigation over the European Commission’s $1 billion fine against Google came on top of new tariffs on the EU and dozens of other trading partners, and continuing pressure from Washington over drug pricing.

But rather than sounding alarms and scrambling to respond to this new phase of Trump’s global trade war, the EU has shown public restraint — a reaction that suggests that the 27-member bloc has become less susceptible to Trump’s pressure tactics.

This year, European capitals saw their united rejection of Trump’s Greenland ambitions fail to trigger a wider transatlantic rupture. His most sweeping tariffs were struck down by the Supreme Court, and their successors have drawn legal challenges. Now, with a chance that Trump’s grip on Washington loosens in the November midterm elections, Europeans are happy to play for time.

“It is a strategy of buying time through dialogue,” Bernd Lange, a German member of the European Parliament and chair of its Committee on International Trade, said in an interview. “The Commission’s approach is to move away from anything that could be seen as legally binding and focus instead on dialogue forums, consultation and areas where cooperation is possible.”

Last year, Brussels repeatedly bristled at Trump’s tariff threats, which at times reached as high as 50 percent, before agreeing to a trade truce at the U.S. president’s golf resort in Turnberry, Scotland. After months of delays that tested Washington’s patience, the EU fulfilled its side of the bargain by passing legislation in June to allow U.S. industrial and some agricultural goods to enter the bloc duty-free.

A USTR official, granted anonymity to share the administration’s thinking, credited the EU for implementing “key commitments,” in the Turnberry deal, “such as massive tariff reductions for U.S. exports, and has made concrete commitments on a number of other burdensome regulatory matters.”

“Any technical talks will be about implementing the remaining commitments, and the U.S. side anticipates this will move at pace,” the official added.

The White House did not respond to a request for comment.

The EU law, however, also includes guardrails should Trump threaten the bloc again.

It didn’t take long for him to do so.

While the 10 percent tariff the U.S. government rolled out July 23 does not violate the Turnberry agreement, which caps U.S. duties on most EU goods at 15 percent, Trump’s threats to investigate Europe’s digital restrictions in the wake of the Google fine would likely do so. The Office of the U.S. Trade Representative has yet to launch an official investigation, but the official there confirmed to POLITICO that the agency expected “to initiate the investigation soon”. That could allow the White House to layer on more tariffs on EU imports.

U.S. Trade Representative Jamieson Greer is also conducting a separate trade investigation into Germany’s pharmaceutical pricing and has suggested he could launch similar reviews of other European countries’ drug pricing practices as well.

Those investigations, however, will take months to resolve, if not longer.

“The second phase of the trade war touches a nerve in Europe: sovereignty. Whether it concerns taxation, health care systems or competition policy, these are areas the EU sees as core to its autonomy,” said Jeromin Zettelmeyer, a former International Monetary Fund and German government official who now heads Brussels-based think tank Bruegel.

“At the same time, Trump no longer appears as politically untouchable as he did at the start of his presidency. Weakening poll numbers ahead of the midterms, controversy over the Iran war and legal setbacks in the U.S. Supreme Court have exposed vulnerabilities,” Zettelmeyer said.

In the meantime, EU officials are keeping channels to Washington open. The thinking in Brussels is that every public confrontation plays to Trump’s preferred negotiating style, whereas slower legal and technical processes give the EU more room to manage disputes on its own terms.

Nor is German Chancellor Friedrich Merz in a rush to offer concessions to the Trump administration on drug pricing, according to a European official familiar with the issue who was granted anonymity to discuss the sensitive talks. Berlin expects the U.S. trade investigation to take at least a year, the person noted.

Brussels is in close touch with Berlin on the probe, which it believes could be a blueprint for other possible U.S. trade investigations into France and Italy’s pharmaceutical policies. Ditte Juul Jørgensen, head of the Commission’s trade department, recently met with German officials in Berlin to focus on a way forward on drug pricing.

The Commission has adopted a similar strategy on transatlantic disagreements on digital policy.

While the Trump administration has pressed for broader talks, including on the enforcement of the EU’s competition rules governing Big Tech platforms, Brussels has taken pains to keep the discussions at a technical level.

In early July, a group of officials from the European Commission’s trade and tech departments headed to Washington for what a Commission spokesperson described as “a dialogue on the dialogue.”

A senior Commission official said the meeting was about seeing where the two sides could “partner up,” with Brussels looking at holding a “high-level” meeting with Washington in the fall and a series of technical rounds in between.

“From the EU’s perspective, both sort of genetically as an organization and tactically, they would be happy if as many of the discussions as possible moved to the technical level in dialogue committees rather than have it be, like, Donald Trump and somebody going at it on Twitter or in competing press statements,” said Dmitry Grozoubinski, a former trade diplomat for the Australian government and the founder of ExplainTrade, an outlet based in Geneva.

The Commission responded with characteristic restraint after Trump threatened retaliation over the latest Google fine. After the U.S. president’s Truth Social post, Brussels emphasized it would seek “technical-level contact” between the EU and the U.S., said deputy chief spokesperson Olof Gill. A meeting at a higher, political level hasn’t yet been confirmed.

However, several people familiar with the matter confirmed they were expecting a reaction from the U.S., possibly in the form of a new 301 investigation.

“I have not heard anything yet on timing for the launch or scope of the Section 301 investigation,” said a U.S. tech industry representative, who was granted anonymity to discuss the conversations with administration officials. “But I believe this has been in the works for some time as a means of leverage in U.S. negotiations with the EU.”

Europe’s strategy depends on shifting disputes out of Trump’s preferred arena of public confrontation. But officials acknowledge that this bet rests on one unpredictable factor: Trump himself.

“We cannot let our guard down,” another Commission official said. “Trump may change course at any moment. His focus is on how markets react to his policies, not on how the EU behaves.”

Stefanie Bolzen reported from Washington and Camille Gijs reported from Brussels. Oliver Ward contributed to this report.