Israeli Prime Minister Benjamin Netanyahu has rejected a U.S.-backed proposal that would require Hamas to disarm in exchange for the withdrawal of Israeli forces from Gaza, dealing a setback to President Donald Trump’s efforts to advance a broader peace agreement.

Speaking at the start of an Israeli government meeting on Sunday, Netanyahu said his government would not accept the 15-point proposal recently presented as a potential breakthrough in efforts to end the conflict.

“Israel does not accept the 15-point document,” Netanyahu said.

Hamas, meanwhile, reaffirmed its commitment to the proposal it negotiated with the Board of Peace, an organization established by Trump to help oversee his Gaza peace initiative.

In a statement, Hamas called on mediators and other parties involved in the negotiations to help ensure the agreement is implemented.

The White House referred questions about Netanyahu’s comments to the Board of Peace, which did not immediately respond.

The proposal, unveiled on July 30, gives Israel and Hamas two weeks to agree on a timetable and mechanism for Hamas to surrender its weapons and for Israeli forces to withdraw from Gaza.

Netanyahu’s rejection represents another challenge to Trump’s attempts to resolve conflicts across the Middle East.

The U.S. president has also expressed optimism about negotiations involving Iran and Gulf countries aimed at ending the continuing regional war. However, Iranian officials have insisted that reopening the strategically important Strait of Hormuz would depend on Washington meeting several major demands.

Those demands reportedly include the withdrawal of U.S. forces from the region, compensation for war damage and the lifting of sanctions.

The conditions have raised fresh doubts about prospects for ending hostilities that have disrupted international shipping and pushed global energy prices higher.

At the same time, signs of disagreement have emerged between Trump and Netanyahu as Washington attempts to bring the regional conflicts to a close.

Netanyahu appeared to acknowledge those tensions during his remarks Sunday, insisting that Israel would prioritize its security interests even when that meant disagreeing with its closest allies.

“Unlike all those who lecture us, we do what needs to be done for Israel’s security,” Netanyahu said, adding that Israel was prepared to “stand our ground, even against our best friends when necessary.”

The disagreement leaves the future of the Gaza proposal uncertain and underscores the significant obstacles facing efforts to secure Hamas’s disarmament, an Israeli withdrawal and a lasting settlement in the territory.