Saudi Arabia has reaffirmed that it will not establish diplomatic ties with Israel unless a Palestinian state is created, directly contradicting President Donald Trump’s recent claim that Riyadh was not demanding Palestinian statehood.

Trump made headlines on Tuesday when he announced that the United States would take over the war-ravaged Gaza Strip after relocating its Palestinian population elsewhere, a proposal that has drawn sharp criticism from Arab nations. Speaking at a joint press conference with Israeli Prime Minister Benjamin Netanyahu, Trump presented his plan as an economic opportunity, suggesting the enclave be redeveloped once it is emptied of its current residents.

In response, Saudi Arabia’s foreign ministry issued a statement on Wednesday rejecting any attempts to forcibly remove Palestinians from their land, emphasizing that Riyadh’s position on the issue is “clear and explicit” and not open to negotiation. Crown Prince Mohammed bin Salman has consistently maintained that Palestinian statehood is a prerequisite for any normalization of relations with Israel.

The potential displacement of Palestinians is an issue of deep sensitivity across the Arab world. As the war in Gaza continues, fears have grown that Palestinians could face another Nakba—the term for the mass displacement of Palestinians during the 1948 Arab-Israeli war.

Trump has long sought to broker a historic agreement between Saudi Arabia and Israel, following the success of the 2020 Abraham Accords, which saw the United Arab Emirates and Bahrain establish formal ties with the Jewish state. However, Riyadh put normalization talks on hold after Israel launched its offensive in Gaza in October 2023, citing growing outrage in the Arab world over the war.

For Israel, securing ties with Saudi Arabia would be a major diplomatic victory, given the kingdom’s vast influence in the Middle East, its status as the world’s largest oil exporter, and its leadership role in the Muslim world. But with Riyadh standing firm on Palestinian statehood, Trump’s vision of a US-controlled Gaza and a broader regional peace deal appears increasingly unlikely.