Trump's Gaza shock wave stuns Middle East and some in White House

Driving the news: After an Oval Office meeting with Netanyahu, Trump presented his proposal to turn Gaza — largely destroyed by Israel in its war with Hamas — into what he called the "Riviera of the Middle East" and invite "the world's people" to move there.

• The sense of shock was palpable among the 150 journalists in the room.
• Very few people on Trump's team knew in advance that he would go so far as to pronounce the U.S. would "own" the war-scarred enclave — a highly interventionist endeavor for a long-time critic of U.S. nation-building around the world.

Zoom in: Some members of Netanyahu's delegation left the room almost jubilant.

• The visit was "truly historic" and "exceeded all of our expectations and dreams," one senior Israeli official gushed. "Trump raised genius solutions to problems that Israel has faced since its establishment."
• Trump's displacement plan was praised by members of the Israeli far-right as a "green light" for full Israeli occupation of Gaza and the building of settlements.
• A source close to Trump said that's not his intention.

Zoom out: Leaders in Egypt, Jordan and the Palestinian Authority were already horrified by Trump's repeated comments over the last two weeks about expelling Palestinians from Gaza. They will be even more nervous now.

• Trump's comments also shocked Saudi Arabia — a country which the president described Tuesday as a key partner in implementing his plans in the region, a U.S. source close to the Saudis told Axios.
• The Saudis were also upset about Trump's claim at the top of his meeting with Netanyahu that the kingdom won't condition normalization of relations with Israel on Palestinian statehood.
• Although it was around 4 a.m. in Riyadh, the Saudi Foreign Ministry issued a strongly worded statement rejecting that claim and opposing Trump's plan for displacing Palestinians.
• "The Saudi crown prince doesn't want to be seen as being part of what Trump is talking about," the U.S. source said.

Behind the scenes: It's not clear how Trump settled on the idea of a U.S. takeover of Gaza.

• One source close to the president said it was Trump's own idea and he had been thinking about it for at least two months.
• Trump was genuinely moved by the scope of the destruction of Gaza, and realizes it could take 15 years to rebuild, another source with knowledge of Trump's thinking said.

• A U.S. official said Trump presented his plan because he came to the conclusion that no one else had any new ideas for Gaza.
• A day before Trump's remarks, deputy White House Middle East envoy Morgan Ortagus told a group of Arab ambassadors who came to express opposition to expelling Palestinians from Gaza that Trump doesn't want their leaders to just say "no," but to come up with their own solutions, a second U.S. official said.

Between the lines: Trump also sees the Gaza Strip as prime real estate that could be at the center of a regional deal involving Saudi Arabia, Israel and other countries.

• But his plan doesn't grapple with the deep historic trauma of displacement for the Palestinians and for countries in the region.
• "He is a disruptor. He wanted to challenge the discourse," a source close to Trump said.

What to watch: Trump's plan could prove disruptive for the Gaza ceasefire deal, with the sides currently implementing the first phase of the deal and beginning to negotiate the second phase.

• Trump emphasized Tuesday that he still wants to bring back all remaining hostages held by Hamas.
• But Trump's plan could increase support for Hamas inside Gaza and push the group to stop implementing the hostage deal.
• Meanwhile, Netanyahu was already looking for a rationale to resume the war when the initial 42-day ceasefire ends.

What's next: King Abdullah II of Jordan will arrive in Washington next week and Egyptian President Abdel Fattah el-Sisi the week after that for what should be dramatic meetings with Trump.