Anat Palette (2:44)

Yeah. So we had Trump present what he called his peace plan, a 20 point peace plan to end the war in Gaza, but also in many ways, how he presented it, bring peace to the Middle East. And he presented this last week alongside Israeli Prime Minister Benjamin Netanyahu. A lot of this came about, our reporting shows, after an Israeli miscalculated strike on Hamas leaders in Doha, Qatar last month that led to a lot of international anger and also to an Arab consensus that surprised the White House and Netanyahu. However, it's important to note that while Trump has been very optimistic, says he wants to get this done fast, a lot of the thorny details have been kind of glossed over and now we're really going to get down to the details this week.

Caitlin McCabe (3:32)

Can you walk us through the key elements of a potential deal?

Anat Palette (3:36)

Yeah. So the 20 point plan that Trump presented is extremely ambitious, I have to say. It's not just to reach a ceasefire or for a prisoner and hostage exchange. It actually lays out other elements which include Arab forces from different countries entering Gaza and working as a stabilizing force. It includes technocratic Palestinian committee. It includes a hostage and prisoner release within 72 hours, everyone. So it's very ambitious. The first part of the deal, according to how it's currently outlined, is supposed to see a hostage and prisoner release, Palestinian prisoner release within 72 hours when Hamas and Israel come to an agreement. And then there's other trickier issues. For example, I think the governance is going to be extremely tricky because we know that also Hamas right now has reservations about giving up power and fully demilitarizing. So we're supposed to see this exchange take place and Trump said he would like to see that within a week.

Caitlin McCabe (4:35)

Yeah, I want to dig in a little bit more to this. Potential hostages for prisoner swap. Obviously, you mentioned the 72 hour mark. How realistic is that?

Anat Palette (4:45)

So I do not think that most sides see that as very realistic. Hamas has already told Arab mediators in conversations that it will have trouble doing so within 72 hours. It says that it has lost contact with some of the groups that are holding the living hostages. Israel believes there are up to 20 living hostages and it also will have trouble locating all the bodies of the deceased hostages, where we have over 20 deceased hostages. Israeli intelligence that finding the deceased hostage bodies is also going to be tricky because they know that they have been moved around at times.

Caitlin McCabe (5:19)

Yeah, that seems quite complicated. Want to dig into one other complicated factor here? There's a bit of an interesting twist with these peace talks. Right. The leader of the Hamas delegation is a man that Israel tried to kill in a missile attack just a few weeks ago.

Anat Palette (5:34)

Yeah. So that's going to be interesting dynamic. So first of all, it's important to say that Israel and Hamas will not be talking directly to each other. They will be talking through mediators. So they're not going to be sitting in the same room. But yes, senior Hamas leaders, you know, most of them have actually been killed by Israel in Gaza. But Hamas also has leadership outside of Gaza that sits in Doha. And so that's going to be an interesting dynamic. I think that they will probably fear for their safety.

Caitlin McCabe (5:57)

And how is all of this being received on the ground in Gaza?

Anat Palette (6:01)

I think Gazans have been through horrific times. So Israeli military controls over 75% of Gaza. So Gazans have been moved to an ever shrinking piece of land. And just talking to Gazans, it's been horrific. I think Gazans are desperate for this war to end. They just want this to stop. They want the bombing to stop. So they are hopeful that Hamas will accept this deal.

Caitlin McCabe (6:23)

That's Wall Street Journal reporter Anat Palette. Anat, thank you for joining us on this very busy week for you.

Anat Palette (6:28)

Thanks for having me.

Caitlin McCabe (6:30)

Coming up, Japanese markets surge after the country elects its first female prime minister. Plus, in a bid to catch up on AI, Elon Musk is gambling billions in Memphis. Those stories and more after the break.

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Caitlin McCabe (7:07)

The simmering confrontation between the White House and Democratic governors continues this week over plans to mobilize federal troops in cities led by Democrats. In Illinois, President Trump has pressed ahead with plans to federalize 300 members of the Illinois National Guard over the objection of Governor J.B. pritzker. The Illinois governor stated that federalization would cause chaos and is a, quote, manufactured performance, end quote, rather than a safety effort. Speaking outside the White House yesterday, President Trump criticized Pritzker, saying he was wrong. And I think that Pritzker, he's not a stupid person.

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I think that Pritzker is afraid for his life.

Caitlin McCabe (7:46)

Trump has increasingly used the military on US Soil either to participate in what he has called a crime crackdown or to protect Immigration and Customs Enforcement facilities and agents from Americans who protest against his policies. Meanwhile, in an emergency hearing last night, a federal judge in Oregon temporarily blocked the deployment of any National Guard under the Trump administration's control inside the state. Judge Karen Immergetz said on Saturday that the Trump administration had overstepped its authority and couldn't deploy Oregon's National Guard to Portland. President Trump expressed his frustration over the ruling, adding that he wasn't, quote, served well, end quote, by a judge who the president appointed during his first term. And the Supreme Court officially returns for a new term today after a summer break, which didn't offer much of a reprieve as justices have refereed a flood of emergency disputes involving the Trump administration administration. The Supreme Court will hear seven months worth of cases, including ones that could shape the Trump presidency, US Elections, and transgender rights. Oil prices are rising in early trading this morning after the Organization of the Petroleum Exporting Countries and its allies agreed to a restrained increase in oil production. The group, known as OPEC, will increase oil production by 137,000 barrels a day in November, in line with October's rise. The move signals caution as the group seeks to regain market share without triggering a price slump. Brent crude has already fallen over 13% this year amid rising supply and fears of a global glut. More recently, though, prices have remained steady, trading between $65 and $70 a barrel. Meanwhile, Japanese markets are swinging sharply this morning after Sanae Takechi's election as leader of the ruling Liberal Democratic Party as investors bet on her pledge for aggressive fiscal expansion. Japan's main stock index jumped more than 4%, led by gains in manufacturing and tech shares. Meanwhile, the yen weakened nearly 2% against the dollar, while Japanese bonds also fell. Her election as head of the Liberal Democratic Party signals a sharp rightward shift in Japanese politics, fueled by voter frustration over immigration and stubborn inflation. The election also mirrors broader global trends, with populist movements gaining ground. And finally, Elon Musk has been at the forefront of innovation of many things electric vehicles, rockets and brain computer interfaces. But when it comes to artificial intelligence, he finds himself in the unusual position of playing catch up to rivals like Sam Altman's OpenAI. In his race to compete, Musk has planted a flag in Memphis, Tennessee. His artificial intelligence company, xai, has already built one massive data center called Colossus in the area. Now he's close to finishing a second facility, which will be even bigger. He's calling it Colossus 2. It's a project that sparked both excitement and backlash. Musk's pitch to Memphis is that he is building infrastructure that will benefit the city, but the data centers will probably add only a few hundred jobs while consuming millions of gallons of water a day and more electricity than is needed to power all the city's homes. Xai declined to comment, as did Memphis city officials. And that's it for what's news for this Monday morning. Today's show is produced by Kate Bullivant. Our supervising producer is Pierce lynch, and I'm Caitlin McCabe for the Wall Street Journal. We'll be back tonight with a new show. Until then, thanks for listening.

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