Hamas’s war economy collapses under Israeli pressure

DDM News

Hamas is facing its worst financial crisis since taking control of Gaza in 2007.

Diaspora digital media (DDM) gathered that the ongoing Israeli military operations have crippled the group’s ability to generate and manage funds.

According to a recent report by The Wall Street Journal, Hamas has stopped paying many of its fighters altogether.

Top officials within the group are now receiving only half of their normal salaries.

The financial collapse comes as a major blow to Hamas’s ability to govern and sustain military operations.

The group had long relied on a complex network of funding sources.

These included foreign donations, local taxation, smuggling networks, and the resale of humanitarian aid.

With most of those sources now disrupted or blocked, Hamas is struggling to maintain its grip on Gaza.

The report notes that Israel’s relentless bombardment has severely limited aid access to Gaza.

This disruption has undercut a critical revenue stream: selling diverted humanitarian goods on the black market.

Intelligence sources from Israeli, Arab, and Western agencies confirmed that Hamas had benefited from reselling seized aid in the past.

With international aid now mostly halted and local resources drying up, the group’s finances are in free fall.

Palestinian lawyer Moumen Al-Natour, a long-time critic of Hamas, described the situation as dire.

“They were mainly dependent on humanitarian aid sold in black markets for cash,” he told The Wall Street Journal.

“They have a big crisis on their hands,” he added.

The group’s military and civil capabilities are both being affected by this financial collapse.

Fighters are going unpaid, civil servants are receiving reduced wages, and public services are deteriorating rapidly.

As morale drops and public frustration grows, Hamas’s control over Gaza is becoming increasingly unstable.

In addition to Israeli military pressure, Hamas is facing declining support from traditional allies.

Iran, one of Hamas’s primary backers, is reportedly scaling back aid due to its own economic difficulties.

Qatar, another significant donor, is also reassessing its support amid failed regional diplomatic efforts.

Among those is the stalled normalization of relations between Israel and Saudi Arabia, which Hamas vehemently opposes.

Founded in 1987 during the First Intifada, Hamas began as an offshoot of the Muslim Brotherhood in Egypt.

It combines political authority with armed resistance, aiming to oppose Israeli control and establish an Islamic state in historic Palestine.

In 2006, Hamas won the Palestinian legislative elections and later ousted Fatah to seize full control of Gaza in 2007.

Since then, it has operated under an Israeli-Egyptian blockade, surviving on smuggling, aid, and foreign support.

Its military wing, the Izz ad-Din al-Qassam Brigades, has played a central role in conflicts with Israel.

However, the group is now in a weaker position than it has been in years.

Without funds to pay its fighters or manage basic governance, Hamas faces unprecedented internal challenges.

It has yet to respond publicly to the reports about its financial crisis.

Meanwhile, Gaza continues to face a worsening humanitarian catastrophe.

Food, medicine, water, and electricity are in short supply.

The broader population is suffering as government functions collapse.

Experts warn that the situation could spiral further if alternative leadership or stabilization efforts do not emerge.

As Gaza’s suffering grows and Hamas’s power wanes, the region’s already fragile stability remains at serious risk.

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