Hamas faces deepening cash crisis in Gaza as Israeli pressure mounts — WSJ

Hamas is grappling with a worsening financial crisis in Gaza as Israeli military operations and tightened restrictions on humanitarian aid have cut off key income streams, according to the exclusive report by The Wall Street Journal, citing Arab, Israeli, and Western officials.

Last month, Israel blocked humanitarian aid deliveries to the Gaza Strip, disrupting one of Hamas’s primary methods of generating revenue—seizing and reselling supplies or collecting taxes on them. The blockade came amid intensified Israeli military operations that have killed Hamas officials responsible for distributing funds and driven others into hiding.

Israeli forces recently reported killing a money changer allegedly central to Hamas’s financing operations, alongside several high-ranking political officials. The result, intelligence sources say, has been a “debilitating squeeze” on the militant group’s ability to function and compensate its members.

Government employees in Gaza linked to Hamas have reportedly stopped receiving salaries, while fighters and political personnel began receiving only half their pay by mid-Ramadan. According to intelligence sources, rank-and-file Hamas members typically earned around $200–$300 a month.

“Even if they sit on large amounts of cash, their ability to distribute it would be very limited right now,” said Eyal Ofer, an open-source researcher on Gaza’s economy. He explained that Hamas has traditionally relied on couriers or designated disbursement points—both of which could be easily targeted by Israeli forces.

Hamas, which did not comment on its financial condition, had previously depended on $15 million monthly cash transfers from Qatar. Western and Arab officials say it also secured funds from regions including West Africa, South Asia, and the United Kingdom, amassing reserves estimated at around $500 million, much of which is held in Turkey.

After the war began, Hamas struggled to access physical cash in Gaza. It reportedly withdrew $180 million from Palestinian banks and created alternate revenue channels by taxing merchants, collecting customs duties at checkpoints, and commandeering or importing goods for resale, sometimes using overseas cash to buy aid items and turn them into profit within Gaza.

Despite these efforts, officials say Hamas was already nearing a liquidity crisis before a temporary ceasefire in January briefly eased restrictions. That window closed again in March when Israel sealed the borders to humanitarian aid.

“There is a big crisis in Hamas in terms of getting the money,” said Moumen Al-Natour, a lawyer from the Al-Shati refugee camp and a critic of Hamas. “They were mainly dependent on humanitarian aid sold in black markets for cash.”

While aid groups have warned that Israel’s blockade risks plunging Gaza’s two million residents into deeper hunger, Israeli Defence Minister Israel Katz said on April 13 that denying Hamas access to humanitarian supplies undermines its control. He also said Israel is developing a new plan to distribute aid through civilian partners.

Israeli officials are now reevaluating how they screen aid shipments—not only for security concerns, but also for their potential economic value to Hamas.

Arab intelligence sources say that during the ceasefire, Hamas used public disbursement points to pay members in cash or goods. After fighting resumed, those methods shifted to clandestine, person-to-person networks as much of the leadership went into hiding.

The financial squeeze is also weakening Hamas’s ability to recruit and maintain internal cohesion as Israeli forces gain ground and rare anti-Hamas protests emerge within Gaza.

Civilians are feeling the strain too. Gaza still uses the Israeli shekel, but new bills haven’t been delivered since the war began. Of the enclave’s 56 bank branches and 91 ATMs, many have been destroyed or are out of service.

Aid groups have distributed tens of millions of dollars in emergency cash through digital platforms, and many Gazans receive remittances from relatives abroad. But accessing physical cash often requires going through money changers who charge commissions of over 20%, according to a senior Palestinian financial official.

No one knows exactly how much cash remains in circulation in Gaza, but Eyal Ofer estimates the figure could be around $3 billion. The shortage has even led to a boom in local businesses dedicated to salvaging torn or worn-out bills, washing and taping them together so they can be reused.

By Tamilla Hasanova