Media: Hamas faces deepening financial crisis as war with Israel grinds on

Hamas is experiencing the most severe financial and administrative crisis in its four-decade history, struggling to maintain both its military operations and civilian governance in Gaza, as the war with Israel enters its tenth month.

The Washington Post claims that the group’s military wing is reportedly unable to pay the salaries of its fighters and has scaled back operations, though it continues to recruit teenagers for tasks such as placing explosives or acting as lookouts.

“Hamas is not rebuilding their tunnels, they’re not paying their highly trained fighters, they’re only surviving,” said Oded Ailam, a former Israeli intelligence official.

The situation has also strained the Hamas-run government in Gaza. Salaries for police and civil servants have been cut, and services have been reduced. “Hamas’s strategy relied on the suffering of Gazans,” said Ahmed Fouad Alkhatib of Realign for Palestine. “But when this strategy failed, it foolishly doubled down on this approach.”

Gazans describe a growing reliance on emergency committees and social networks to maintain basic functions like garbage collection and fuel distribution. “Hamas sees aid as its most important currency,” said a man from Deir al-Balah involved in aid delivery.

Until recently, Hamas taxed commercial shipments and seized portions of humanitarian aid, but those revenue streams have dried up since the closure of border crossings and Israel's tightened siege. “One of the reasons that Hamas is pushing for a return to the old system is that they have guys in all of the warehouses,” said a Western official familiar with ceasefire negotiations.

Israel alleges that Hamas has diverted aid, though it has provided no public proof. The U.N. and other aid organizations deny systematic theft. “Systematic aid diversion by Hamas has not been an issue for us so far in the conflict,” said Carl Skau of the World Food Program.

Amid growing internal pressure, Hamas has grown increasingly repressive. “Israel’s actions are undeniably criminal, but Hamas’s poor judgment and failure to account for the war’s aftermath have also contributed significantly to this disaster,” said Rami, a Gaza government employee.

By Vafa Guliyeva