Hamas is reportedly facing a deepening financial crisis in the Gaza Strip, unable to pay operatives and government employees after Israeli airstrikes and a halt in humanitarian aid cut off key revenue sources, according to a report by The Wall Street Journal (WSJ).
Citing Arab, Israeli and Western officials, the WSJ reported Wednesday that Hamas has struggled to pay salaries to fighters and civil servants, with even senior officials receiving only partial wages. Fighters reportedly now receive between $200 and $300 per month if they are paid at all.
“This is a major crisis for Hamas,” Moumen Al-Natour, a Palestinian lawyer from the Al-Shati refugee camp in central Gaza, told the outlet. “They were mainly dependent on aid, which was sold for cash on the black market.”
According to intelligence officials cited in the report, Hamas had used humanitarian aid to generate income through black-market sales, taxation of merchants, and customs collection at checkpoints. Israel’s decision last month to block aid deliveries disrupted these practices, while Israeli strikes have reportedly killed or displaced operatives responsible for cash distribution.
Western and Arab officials said Hamas used foreign funds to buy humanitarian goods abroad, which were then resold in Gaza for profit. The January ceasefire briefly revived this income stream by allowing an influx of aid, but its collapse in March has pushed the group closer to insolvency.
Prior to the war, Hamas received $15 million in monthly cash transfers from Qatar and raised additional funds globally, including from donors in Turkey, South Asia, and West Africa. The WSJ reported that as much as $500 million in reserves may still be held overseas, much of it believed to be in Turkey. However, officials say wartime conditions and Israeli restrictions have severely hampered Hamas’s ability to move and distribute funds.
Israel has also restricted the flow of new shekel bills into Gaza, and with many banks and ATMs destroyed, residents have resorted to repairing worn-out currency for reuse.
Among the most significant losses to Hamas’s financial network was the killing of Saeed Ahmed al-Abed al-Khodari, a senior money exchanger and head of Al-Wafaq Exchange. Israel, which designated Al-Wafaq a terror organization, said al-Khodari played a central role in transferring funds to Hamas’s military wing.
Defense Minister Israel Katz said Wednesday that Israel plans to resume humanitarian aid deliveries only through “civilian companies,” in order to undermine Hamas’s control. He added that future aid policies may block goods with high financial value to the group.
Ceasefire talks remain stalled, with Israel insisting it will continue its campaign until Hamas is dismantled. Hamas is demanding a full end to the war before agreeing to release hostages or resume negotiations.
