Netanyahu says Israel will establish a new security corridor across Gaza to pressure Hamas

DEIR AL-BALAH, Gaza Strip (AP) — Prime Minister Benjamin Netanyahu said Wednesday that Israel is establishing a new security corridor across the Gaza Strip to pressure Hamas, suggesting it would cut off the southern city of Rafah, which Israel has ordered evacuated, from the rest of the Palestinian territory.

The announcement came after Netanyahu's defense minister said Israel would seize large areas of Gaza and add them to its so-called security zones. A wave of Israeli strikes, meanwhile, killed more than 40 Palestinians, nearly half of them women and children, according to Palestinian health officials.

Israel has vowed to escalate the nearly 18-month war with Hamas until the militant group returns dozens of remaining hostages, disarms and leaves the territory. Israel ended a ceasefire in March and has imposed a monthlong halt on all imports of food, fuel and humanitarian aid.

Netanyahu described the new axis as the Morag corridor, using the name of a Jewish settlement that once stood between Rafah and Khan Younis, suggesting it would run between the two southern cities. He said it would be "a second Philadelphi corridor " referring to the Gaza side of the border with Egypt further south, which has been under Israeli control since last May.

Israel has reasserted control over the Netzarim corridor, also named for a former settlement, that cuts off the northern third of Gaza, including Gaza City, from the rest of the narrow coastal strip. Both of the existing corridors run from the Israeli border to the Mediterranean Sea.

“We are cutting up the strip, and we are increasing the pressure step by step, so that they will give us our hostages,” Netanyahu said.

The Western-backed Palestinian Authority, led by rivals of Hamas, expressed its “complete rejection” of the planned corridor. Its statement also called for Hamas to give up power in Gaza, where the militant group has faced rare protests recently.

In northern Gaza, an Israeli airstrike hit a U.N. building in the built-up Jabaliya refugee camp, killing 15 people, including nine children and two women, according to the Indonesian Hospital. The Israeli military said it struck Hamas militants in a command and control center.

The building, previously a clinic, had been converted into a shelter for displaced people, with more than 700 residing there, according to Juliette Touma, a spokesperson for the U.N. agency for Palestinian refugees, the main aid provider in Gaza. No U.N. staff were wounded in the strike.

She said U.N. staff warned people about the dangers of remaining there after Wednesday's strike but that many chose to stay, “simply because they have absolutely nowhere else to go.”

More than 60% of Gaza is now considered a “no-go” zone because of Israeli evacuation orders, according to Olga Cherevko, a spokesperson for the U.N. humanitarian aid office. Hundreds of thousands people are living in squalid tent camps along the coast or in the ruins of their destroyed homes.

Israeli Defense Minister Israel Katz earlier said Israel would seize “large areas” and add them to its security zones, apparently referring to an existing buffer zone along Gaza's entire perimeter. He called on Gaza residents to “expel Hamas and return all the hostages,” saying “this is the only way to end the war.”

On Sunday, Netanyahu said Israel plans to maintain overall security control of Gaza after the war and implement President Donald Trump's proposal to resettle much of its population elsewhere through what the Israeli leader referred to as “voluntary emigration.”

Palestinians have rejected the plan, viewing it as expulsion from their homeland after Israel's offensive left much of it uninhabitable, and human rights experts say implementing the plan would likely violate international law.

Hamas has said it will only release the remaining 59 hostages — 24 of whom are believed to be alive — in exchange for the release of more Palestinian prisoners, a lasting ceasefire and an Israeli pullout. The group has rejected demands that it lay down its arms or leave the territory.

The decision to resume the war has fueled protests in Israel, where many fear it has put the hostages at grave risk and are calling for another ceasefire and exchange with Hamas.

The Hostage Families Forum, which represents most captives’ families, said they were “horrified to wake up this morning to the Defense Minister’s announcement about expanding military operations in Gaza.”

The group called on the Trump administration, which took credit for brokering the ceasefire but has supported Israel's decision to end it, to do everything possible to free the remaining captives.

“Our highest priority must be an immediate deal to bring ALL hostages back home — the living for rehabilitation and those killed for proper burial — and end this war,” the group said.

In addition to the 15 killed in northern Gaza, Israeli airstrikes overnight into Wednesday killed another 28 people across the territory, according to local hospitals. The Nasser Hospital in the southern city of Khan Younis said the dead included five women, one of them pregnant, and two children.

Israel says it targets only militants and makes every effort to spare civilians, blaming Hamas for their deaths because the militants operate in densely populated areas.

Two projectiles were fired out of Gaza late Wednesday and intercepted, the Israeli military said. It later issued evacuation orders for several communities in northern Gaza, “with a focus on shelters,” indicating it would soon carry out retaliatory strikes.

The war began when Hamas-led militants attacked southern Israel on Oct. 7, 2023, killing around 1,200 people, mostly civilians, and taking 251 hostages, most of whom have since been released in ceasefire agreements and other deals. Israel rescued eight living hostages and has recovered dozens of bodies.

Israel’s offensive has killed more than 50,000 Palestinians, according to Gaza’s Health Ministry, which doesn’t say whether those killed are civilians or combatants. Israel says it has killed around 20,000 militants, without providing evidence.

The war has left vast areas of Gaza in ruins and at its height displaced around 90% of the population.

Scharf reported from Jerusalem. Associated Press writers Elena Becatoros in Athens, Greece; Bassem Mroue in Beirut; and Sam Mednick in Tel Aviv, Israel, contributed to this report.

Follow AP’s war coverage at https://apnews.com/hub/israel-hamas-war

People take part in a protest demanding the immediate release of hostages held by Hamas in the Gaza Strip, in Tel Aviv, Israel, Saturday, March 29, 2025. (AP Photo/Maya Alleruzzo)

Palestinians inspect a UN building after it was hit by an Israeli strike, in Jabaliya, northern Gaza Strip on Wednesday, April 2, 2025. (AP Photo/Jehad Alshrafi)

Palestinians react next to the bodies of their relatives, killed in an Israeli army strike, before their burial at a hospital in Khan Younis, Gaza Strip on Wednesday, April 2, 2025. (AP Photo/Abdel Kareem Hana)

Palestinians inspect the site hit by an Israeli strike in Khan Younis, Gaza Strip on Wednesday, April 2, 2025. (AP Photo/Abdel Kareem Hana)

Palestinians inspect a UN building after it was hit by an Israeli strike, in Jabaliya, northern Gaza Strip on Wednesday, April 2, 2025. (AP Photo/Jehad Alshrafi)

Palestinians grieve over the bodies of their relatives, who were killed in an Israeli airstrike, as they prepare for burial at a hospital in Beit Lahiya, Gaza Strip, on Wednesday, April 2, 2025. (AP Photo/Jehad Alshrafi)

FILE - Palestinians wait for donated food at a distribution center in Beit Lahiya, northern Gaza Strip, Sunday, March 16, 2025. (AP Photo/Abdel Kareem Hana, File)

FILE - Palestinians inspect the rubble caused by an Israeli bombardment in Deir al-Balah, Gaza Strip on Saturday, March 22, 2025. (AP Photo/Abdel Kareem Hana, File)

FILE - Displaced Palestinians carry their belongings on the outskirts of Gaza City, Friday March 21, 2025. (AP Photo/Abdel Kareem Hana, File)

FILE - Palestinians who fled Rafah after Israeli evacuation orders arrive in Khan Younis, Gaza, on Sunday, March 23, 2025. (AP Photo/Abdel Kareem Hana, File)

FILE - Displaced Palestinians arrive in Khan Younis, Gaza, on Sunday, March 23, 2025. (AP Photo/Abdel Kareem Hana, File)

FILE - Behind a tent camp for displaced Palestinians, smoke rises from a building after it was targeted by an Israeli army strike in Gaza City, Saturday, March 22, 2025. (AP Photo/Jehad Alshrafi, File)

FILE - Palestinians walk through Al-Shati camp, Gaza City, Tuesday, March 25, 2025. (AP Photo/Jehad Alshrafi, File)

FILE - Palestinians who fled Rafah after Israeli evacuation orders, arrive in Khan Younis, Gaza, on Monday, March 31, 2025. (AP Photo/Abdel Kareem Hana, File)

FILE - Displaced Palestinians carry water in Jabaliya, Gaza Strip on Monday, March 31, 2025. (AP Photo/Jehad Alshrafi, File)

NEW YORK (AP) — U.S. stocks careened through a manic Monday after President Donald Trump threatened to crank his tariffs higher, despite a stunning display showing how dearly Wall Street wants him to do the opposite.

The S&P 500 slipped 0.2% at the end of a day full of heart-racing reversals as battered financial markets try to figure out what Trump’s ultimate goal is for his trade war. If it’s to get other countries to agree to trade deals, he could lower his tariffs and avoid a possible recession. But if it’s to remake the economy and stick with tariffs for the long haul, stock prices may need to fall further.

The Dow Jones Industrial Average fell 349 points, or 0.9%, and the Nasdaq composite edged up by 0.1%.

All three indexes started the day sharply lower, and the Dow plunged as many as 1,700 points following even worse losses elsewhere in the world. But it suddenly surged to a gain of nearly 900 points in the late morning. The S&P 500, meanwhile, went from a loss of 4.7% to a leap of 3.4%, which would have been its biggest jump in years.

The sudden rise followed a false rumor that Trump was considering a 90-day pause on his tariffs, one that a White House account on X quickly labeled as “fake news.” That a rumor could move trillions of dollars’ worth of investments shows how much investors are hoping to see signs that Trump may let up on tariffs.

Stocks quickly turned back down, and shortly afterward, Trump dug in further and said he may raise tariffs more against China after the world’s second-largest economy retaliated last week with its own set of tariffs on U.S. products.

It’s a slap in the face to Wall Street because it suggests Trump may not care how much pain he inflicts on the market. Many professional investors had long thought that a president who used to crow about records reached under his watch would pull back on policies if they sent the Dow reeling.

On Sunday Trump told reporters aboard Air Force One that he wasn’t concerned about a sell-off and that “sometimes you have to take medicine to fix something.”

Trump has given several reasons for his stiff tariffs, including to bring manufacturing jobs back to the United States, which is a process that could take years. Trump on Sunday said he wanted to bring down the numbers for how much more the United States imports from other countries versus how much it sends to them.

Indexes nevertheless did keep swinging between losses and gains Monday after Trump’s latest tariff threat, in part because hope still remains in markets that negotiations may still come.

“We’re not calling the all-clear at all, but when you have this type of volatility in the market, of course you’re going to have back and forth” in markets not just day to day but also hour to hour, said Nate Thooft, a senior portfolio manager at Manulife Investment Management.

“We’re all waiting for the next bit of information,” he said. “Literally a Truth Social tweet or an announcement of some sort about real negotiations could dramatically move this market. This is the world we live in right now.”

All that seemed certain Monday was the financial pain hammering investments around the world for a third day after Trump announced tariffs in his “Liberation Day.”

Stocks in Hong Kong plunged 13.2% for their worst day since 1997. A barrel of benchmark U.S. crude oil dipped below $60 during the morning for the first time since 2021, hurt by worries that a global economy weakened by trade barriers will burn less fuel. Bitcoin sank below $79,000, down from its record above $100,000 set in January, after holding steadier than other markets last week.

Trump’s tariffs are an attack on the globalization that’s remade the world’s economy, which helped bring down prices for products on the shelves of U.S. stores but also caused production jobs to leave for other countries.

It also adds pressure on the Federal Reserve. Investors have become nearly conditioned to expect the central bank to swoop in as a hero by slashing interest rates to protect the economy during every downturn. But the Fed may have less freedom to act this time around because inflation remains higher than the Fed would like. And while lower interest rates can goose the economy, they can also put upward pressure on inflation.

“The recent tariffs will likely increase inflation and are causing many to consider a greater probability of a recession,” JPMorgan CEO Jamie Dimon, one of the most influential executives on Wall Street, wrote in his annual letter to shareholders Monday. “Whether or not the menu of tariffs causes a recession remains in question, but it will slow down growth.”

In the bond market, Treasury yields rallied to recover some of their sharp drops from earlier weeks. Some of the big move may have been because of reduced expectations for cuts to interest rates by the Fed. Some analysts also said it could be due to investors outside of the United States wanting to pare their U.S. investments.

The yield on the 10-year Treasury jumped to 4.20% from 4.01% late Friday.

Earlier in the day, the S&P 500 briefly fell more than 20% below its record set less than two months ago. If it finishes a day below that bar, it would be a big enough drop that Wall Street has a name for it. A “bear market” signifies a downturn that’s moved beyond a run-of-the-mill 10% drop, which happens every year or so, and has graduated into something more vicious.

The S&P 500, which sits at the heart of many investors’ 401(k) accounts, is coming off its worst week since COVID began crashing the global economy in March 2020.

All told, the index fell 11.83 points Monday to 5,062.25. The Dow Jones Industrial Average dropped 349.26 to 37,965.60, and the Nasdaq composite added 15.48 to 15,603.26.

Kurtenbach reported from Bangkok. McHugh reported from Frankfurt, Germany. Associated Press writers Ayaka McGill, Paul Harloff, Matt Ott and Jiang Junzhe also contributed.

Traders work on the floor at the New York Stock Exchange in New York, Monday, April 7, 2025. (AP Photo/Seth Wenig)

President Donald Trump is seen on the television as traders work on the floor at the New York Stock Exchange in New York, Monday, April 7, 2025. (AP Photo/Seth Wenig)

Traders work on the floor at the New York Stock Exchange in New York, Monday, April 7, 2025. (AP Photo/Seth Wenig)

President Donald Trump is seen on the television as traders work on the floor at the New York Stock Exchange in New York, Monday, April 7, 2025. (AP Photo/Seth Wenig)

Bobby Charmak, left, and others work on the floor at the New York Stock Exchange in New York, Monday, April 7, 2025. (AP Photo/Seth Wenig)

An electronic display shows financial information on the floor at the New York Stock Exchange in New York, Monday, April 7, 2025. (AP Photo/Seth Wenig)

Federico DeMarco works on the floor at the New York Stock Exchange in New York, Monday, April 7, 2025. (AP Photo/Seth Wenig)

Traders work on the floor at the New York Stock Exchange in New York, Monday, April 7, 2025. (AP Photo/Seth Wenig)

Chris Lagana works on the floor at the New York Stock Exchange in New York, Monday, April 7, 2025. (AP Photo/Seth Wenig)

Traders work on the floor at the New York Stock Exchange in New York, Monday, April 7, 2025. (AP Photo/Seth Wenig)

Traders work on the options floor at the New York Stock Exchange in New York, Monday, April 7, 2025. (AP Photo/Seth Wenig)

While a stock exchange trader sits in front of his monitors on the trading floor of the Frankfurt Stock Exchange, Germany, the display board with the Dax curve shows a value of less than 20,000 points. (Arne Dedert/dpa via AP)

While a stock exchange trader sits in front of his monitors on the trading floor of the Frankfurt Stock Exchange, Germany, the display board with the Dax curve shows a value of less than 20,000 points. (Arne Dedert/dpa via AP)

Currency traders work near a screen showing the Korea Composite Stock Price Index (KOSPI), top left, and the foreign exchange rate between U.S. dollar and South Korean won, top center, at the foreign exchange dealing room of the KEB Hana Bank headquarters in Seoul, South Korea, Monday, April 7, 2025. (AP Photo/Ahn Young-joon)

An electronic stock board shows that Nikkei stock average dropped over 2,900 Japanese yen in Tokyo Monday, April 7, 2025. (Kyodo News via AP)

Currency traders work near a screen showing the Korea Composite Stock Price Index (KOSPI) and the foreign exchange rate between U.S. dollar and South Korean won, top right, at the foreign exchange dealing room of the KEB Hana Bank headquarters in Seoul, South Korea, Monday, April 7, 2025. (AP Photo/Ahn Young-joon)

A person walks past an electronic stock board in Tokyo Monday, April 7, 2025. (Kyodo News via AP)

Currency traders watch monitors near a screen showing the Korea Composite Stock Price Index (KOSPI), top left, and the foreign exchange rate between U.S. dollar and South Korean won, top center, at the foreign exchange dealing room of the KEB Hana Bank headquarters in Seoul, South Korea, Monday, April 7, 2025. (AP Photo/Ahn Young-joon)

US President Donald Trump appears on a television screen at the stock market in Frankfurt, Germany, Thursday, April 3, 2025. (AP Photo/Michael Probst)

A screen displays financial news as traders work on the floor at the New York Stock Exchange in New York, Thursday, April 3, 2025. (AP Photo/Seth Wenig)