Diplomats and analysts have been left guessing whether Trump truly covets the war-ravaged Gaza Strip or was threatening a takeover to extract concessions from Arab states. Trump's secretary of state, Marco Rubio, suggested it was the latter and that Arab states should make a counteroffer.

With the Egyptian plan gaining momentum, it appears Trump has been swayed.

During a visit to Israel on Monday, Republican Senator Lindsey Graham said there was "very little appetite" for the US to take over Gaza "in any way, shape or form".