CHANDLER, Ariz.—A half-dozen friends gathered at a hookah bar just outside of Phoenix for their regular hangout, when they came around to a topic that had animated them during the presidential election: what the future of Gaza would look like under President Trump.

Arab leaders on Tuesday endorsed Egypt’s postwar plan for the Gaza Strip that would allow its roughly 2 million Palestinians to remain, in a counterproposal to US President Donald Trump’s plan to depopulate the territory and redevelop it as a beach destination.

As Israel remains deadlocked with Hamas over key issues, Gaza’s future after the war ends appears no closer to a resolution.