What We’re Watching: US arrives at Gaza peace negotiations, Japan’s potential next prime minister hits new hurdle, Trump ends Venezuela diplomacy

Trump’s team arrives to get the Gaza peace deal over the finish line

President Donald Trump’s envoys Jared Kushner and Steve Witkoff arrived in Sharm el-Sheikh, Egypt, on Wednesday to join negotiations aimed at securing the release of remaining Hamas-held hostages and ending the two-year Gaza war. Their arrival marks a pivotal phase in indirect talks between Israel and Hamas, which began Monday. Trump has urged both sides to reach a deal within days, calling the next 48 hours crucial. Qatari, Turkish, Egyptian, and Israeli officials are also participating. US officials say Kushner and Witkoff will stay until an agreement is reached, expressing cautious optimism that a breakthrough is imminent.

Coalition rifts complicate the election of Japan’s next prime minister

Sanae Takaichi, who appeared poised to be Japan's next prime minister after the ruling Liberal Democratic Party voted this weekend, is already facing friction with her ruling coalition partner, Komeito, over concerns that she is too conservative. The rift could delay or even threaten her confirmation in parliament, where the coalition lacks a majority. If ties with Komeito break, Takaichi may have to turn to the fiscally liberal Democratic Party for the People, which would unsettle investors and further weaken the yen. Coalition talks are ongoing, with the parliamentary vote likely postponed. Opposition parties are exploring an alternative candidate, but analysts say Takaichi still seems likely to become Japan’s first female premier.

Trump ends Venezuela talks, paving way for military escalation
Donald Trump has ended diplomatic talks with Venezuela, signaling a shift toward potential military escalation against President Nicolás Maduro’s government and alleged drug trafficking networks. US envoy Richard Grenell had led months of negotiations with Maduro, but Trump ordered all outreach to stop after growing frustrated with Maduro’s refusal to yield power. Secretary of State Marco Rubio and other officials advocate a harder line, labeling Maduro an “illegitimate” leader tied to cartels. The move follows US strikes on suspected drug-trafficking vessels near Venezuela, a formal declaration that the US is in “armed conflict” with cartel groups, and lays the groundwork for further escalation.