Israel’s military campaign against Hamas has triggered a major financial crisis for the terrorist group, which is now struggling to pay its gunmen, according to a report on Wednesday.
Moumen al-Natour, a lawyer from the Al-Shati area in central Gaza, told The Wall Street Journal that Hamas has “a big crisis” on its hands. “They were mainly dependent on humanitarian aid sold in black markets for cash,” he said.
The group also imposed taxes on merchants, collected customs fees at checkpoints and seized goods for resale, according to the Journal.
Many Hamas government workers have stopped receiving salaries altogether, according to the report. Since last month, senior operatives and political figures have reportedly been paid only about half of their usual income, while lower-ranking terrorists are said to be getting just $200 to $300 per month.
A temporary financial boost occurred during a ceasefire in January, which allowed increased aid to enter Gaza. However, when the truce ended in March, Israel resumed its military campaign and halted aid deliveries, worsening Hamas’s financial condition, according to the Journal.
The report also noted that Israeli airstrikes have focused on Hamas officials who handle cash distribution, forcing some into hiding.
Beyond payroll issues, Hamas is said to be struggling with recruitment and maintaining public support. Some residents in Gaza have been protesting against the group.
Israel may broaden its restrictions to include not only aid that could be used militarily, but also goods of significant economic value to Hamas, the Journal reported, citing unnamed officials.
Hamas is believed to have stashed around $500 million overseas, including funds from Qatar, according to Western and Arab estimates cited by the Journal. Gaza faces a shortage of physical currency. Israel’s central bank has stopped delivering fresh bills, and numerous banks and ATMs have been destroyed. In response, Palestinians have turned to “money repair shops” to mend damaged currency, the Journal reported.
The exact amount of cash still in circulation in Gaza remains unclear. One analyst told the Journal there could be as much as $3 billion.
Israeli Defense Minister Israel Katz said Wednesday that humanitarian aid would eventually resume, but only through “civilian companies,” in order to prevent Hamas from accessing the supplies. Israel’s strategy, he said, is focused on “stopping humanitarian aid, which undermines Hamas’s control over the population.”
Efforts to negotiate a new ceasefire, which would include a hostage release, have so far failed. Israel remains committed to its military campaign until Hamas is defeated, while Hamas continues to demand a full end to the war.