The ongoing conflict with Iran has significantly slowed the limited progress achieved by the U.S. initiative called the 'Peace Council', which was introduced under President Donald Trump's administration. This initiative emerged as part of a ceasefire agreement brokered by Washington between Israel and Hamas last October, with the goal of reconstructing Gaza and enhancing stability in conflict-affected areas. In February, around 24 countries committed to providing over $16 billion for the council, including $10 billion from the United States alone.

According to a report by Politico, the council has established its accounts with the World Bank and JPMorgan Chase, and the U.S. administration has been working with the pledging countries to provide necessary banking information for transferring funds, indicating that the promised financial commitments have yet to be converted into actual funding. Initial momentum for the initiative was building with direct follow-up from U.S. envoys Steve Goldstein and Jared Kushner, who were involved in matters related to ceasefire details and post-war arrangements in Gaza.

However, this activity has begun to wane as the war on Iran has escalated, causing disruptions to the efforts aimed at stabilizing the region through the proposed Peace Council. The implications of this conflict stretch beyond the immediate military confrontations, potentially undermining international commitments and delaying essential aid and reconstruction in Gaza, which is desperately needed in the wake of ongoing violence and humanitarian crises.