Obvious to anyone with common sense, Obama intended to use this as a private avenue to get supplies to Hamas without having to deal with Israeli security and inspections. Everyone I know, knew Israel would never allow this to happen.
Israel is a coastal nation. Israel has piers all over the country. The very last thing Israel needs is yet another pier. The idea that America wanted their own privately constructed, privately controlled pier, directly to Hamas was suspicious from the beginning.
Nobody should be surprised. This was the inevitable outcome from the first day they started.