Iran-Backed Gaza Factions Face Financial Strain, Fear Collapse

Ziyad al-Nakhalah, head of the Palestinian Islamic Jihad movement (seated right), alongside Naim Qassem, secretary-general of Lebanon’s Hezbollah, and senior Iranian military officials during the funeral of late Hamas leader Ismail Haniyeh in Tehran, August 2024 (Reuters)
Ziyad al-Nakhalah, head of the Palestinian Islamic Jihad movement (seated right), alongside Naim Qassem, secretary-general of Lebanon’s Hezbollah, and senior Iranian military officials during the funeral of late Hamas leader Ismail Haniyeh in Tehran, August 2024 (Reuters)
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Iran-Backed Gaza Factions Face Financial Strain, Fear Collapse

Ziyad al-Nakhalah, head of the Palestinian Islamic Jihad movement (seated right), alongside Naim Qassem, secretary-general of Lebanon’s Hezbollah, and senior Iranian military officials during the funeral of late Hamas leader Ismail Haniyeh in Tehran, August 2024 (Reuters)
Ziyad al-Nakhalah, head of the Palestinian Islamic Jihad movement (seated right), alongside Naim Qassem, secretary-general of Lebanon’s Hezbollah, and senior Iranian military officials during the funeral of late Hamas leader Ismail Haniyeh in Tehran, August 2024 (Reuters)

Field commanders and activists from Iranian-backed Palestinian factions in Gaza warn of a potential “complete collapse” as a worsening financial crisis comes amid signs of a possible US strike on Tehran.

Nearly two years of Israeli war in Gaza, along with strikes extending to Lebanon, Iran and parts of Syria, have strained money transfer routes and drained the factions’ assets and savings.

Islamic Jihad is the largest faction financially and logistically tied to Iran. To a lesser extent, links also reach the Popular Resistance Committees, the Mujahideen Brigades and other armed groups. Sources from those factions and activists in Gaza said the financial squeeze has hit all of them.

One source said stipends for individual members have dropped to between 200 and 400 shekels (the dollar equals 3.10 shekels) every 60 to 70 days, down from 800 to 2,200 shekels per month or every 40 days for some prominent members and activists before the war.

“Even at the leadership level, allocations have fallen to 1,000 shekels at most every two months or more, compared with more than 3,000 shekels nearly every month before the war,” the source said.

A source in a more minor faction said members of his group have received nothing for more than three months and now rely on intermittent donations from other parties, arriving roughly every two months or more, to distribute just 200 shekels per member.

Sanctions deepen the strain

Economic sanctions imposed by Washington in recent months on Iranian individuals and entities have compounded the difficulty of sustaining support, with leaders and field operatives locked in constant discussions about the crisis and its outlook.

Some factions receive direct backing from Iran and, to a lesser degree, rely on ties with Lebanon’s Hezbollah dating to their founding years, particularly during the second Intifada that erupted in late 2000.

Islamic Jihad sources said dwindling resources have hit charities affiliated with the movement. At the same time, allocations to other “humanitarian institutions” have been cut back to minimal activity, despite their direct affiliation with the Iranian regime.

More than one source within the movement described an unprecedented financial crisis, both inside and outside Gaza, especially in Lebanon, where Hezbollah has sustained heavy blows, and in Syria, where the movement has weakened significantly since the collapse of Bashar al-Assad’s rule.

Even so, sources said Islamic Jihad may be the last to face “collapse,” citing its popular base and ability to manage some affairs if security conditions stabilize at home and abroad.

The risk appears more immediate for other Iran-linked factions, which, before the war, relied on funding from Hamas. That support has stopped as Hamas grapples with mounting financial troubles of its own.

Hamas, however, has diversified revenue streams. Its years of governing Gaza enabled it to establish “investment projects” inside and outside the enclave, alongside tax revenues and other income collected by its government.

Iranian regret

Asharq Al-Awsat has learned that Iranian parties have expressed regret to some faction leaders over the current situation, citing the difficult circumstances facing Iran that have disrupted financial and military support.

Field sources said growing concern over a possible strike on Iran is intensifying fears of collapse among Tehran-linked factions, particularly given their fragile finances. Some field or armed members have been forced to seek basic jobs to support their families despite Israeli pursuit, they said.

Those who eased security precautions under financial pressure do not represent the majority, the sources added. Most leaders and members continue to carry out assigned tasks, banking on a diplomatic deal on Iran’s nuclear program to head off a US strike on the country.



Israeli Strikes Damage Hospital in Lebanon

File photo: Destroyed houses that were hit in an Israeli airstrike in Saksakiyeh village, south Lebanon, Friday, April 3, 2026. (AP Photo/Hussein Malla)
File photo: Destroyed houses that were hit in an Israeli airstrike in Saksakiyeh village, south Lebanon, Friday, April 3, 2026. (AP Photo/Hussein Malla)
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Israeli Strikes Damage Hospital in Lebanon

File photo: Destroyed houses that were hit in an Israeli airstrike in Saksakiyeh village, south Lebanon, Friday, April 3, 2026. (AP Photo/Hussein Malla)
File photo: Destroyed houses that were hit in an Israeli airstrike in Saksakiyeh village, south Lebanon, Friday, April 3, 2026. (AP Photo/Hussein Malla)

A hospital in the coastal Lebanese city of Tyre was damaged by Israeli airstrikes on nearby buildings that wounded 11 people, the health ministry said on Saturday.

The director of the Lebanese Italian Hospital told the state-run National News Agency (NNA) that it would "remain open to provide the necessary medical care" despite the damage.

Strikes destroyed two buildings nearby, an AFP correspondent saw, shattering windows and causing suspended ceilings to collapse in the hospital, the facility's management said.

A series of attacks hit the Tyre region on Saturday, including one on its port that struck a small boat and damaged others moored nearby, the AFP correspondent said.

Israel has been carrying out strikes across Lebanon and launched a ground invasion in the south after Hezbollah entered the war in the Middle East on the side of its backer Iran on March 2.

Tens of thousands of people have left Tyre, but around 20,000 remain, including 15,000 displaced from surrounding villages, despite Israeli evacuation warnings covering most of the city and a broad swathe of southern Lebanon.

The NNA also reported that Israeli forces abducted a man in Shebaa, near the Israeli border in the east, at around 3:00 am on Saturday.


Indonesia Slams 'Unacceptable' Peacekeeper Casualties in Lebanon

FILE PHOTO: UNIFIL vehicles drive on a main road in Qlayaa, amid escalating hostilities between Israel and Hezbollah, as the US-Israel conflict with Iran continues, in Qlayaa, southern Lebanon, March 27, 2026. REUTERS/Karamallah Daher/File Photo
FILE PHOTO: UNIFIL vehicles drive on a main road in Qlayaa, amid escalating hostilities between Israel and Hezbollah, as the US-Israel conflict with Iran continues, in Qlayaa, southern Lebanon, March 27, 2026. REUTERS/Karamallah Daher/File Photo
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Indonesia Slams 'Unacceptable' Peacekeeper Casualties in Lebanon

FILE PHOTO: UNIFIL vehicles drive on a main road in Qlayaa, amid escalating hostilities between Israel and Hezbollah, as the US-Israel conflict with Iran continues, in Qlayaa, southern Lebanon, March 27, 2026. REUTERS/Karamallah Daher/File Photo
FILE PHOTO: UNIFIL vehicles drive on a main road in Qlayaa, amid escalating hostilities between Israel and Hezbollah, as the US-Israel conflict with Iran continues, in Qlayaa, southern Lebanon, March 27, 2026. REUTERS/Karamallah Daher/File Photo

The Indonesian government on Saturday slammed as "unacceptable" an explosion that injured three of its peacekeepers in Lebanon within days of three other blue helmets from the Southeast Asian nation being killed.

The United Nations Interim Force in Lebanon (UNIFIL) said three peacekeepers were wounded in a blast that occurred inside a UN facility near Adaisseh on Friday afternoon, and rushed to hospital.

Two were seriously wounded.

The UN Information Center in Jakarta said the "origin of the explosion" was unknown but identified the injured soldiers as Indonesian.

"Repeated attacks or incidents of this kind are unacceptable," the Indonesian foreign ministry said in a statement.

"Regardless of their cause, these events underscore the urgent need to strengthen protection for UN peacekeeping forces amid an increasingly dangerous conflict situation."

The government urged the UN Security Council to investigate the events and "to immediately convene a meeting of troop-contributing countries to UNIFIL to conduct a review and take measures to enhance the protection of personnel serving with UNIFIL".

Friday's incident came just days after an Indonesian peacekeeper died when a projectile exploded on March 29 in southern Lebanon, where Israel and Hezbollah have been fighting since Lebanon was drawn into the Middle East war.

A UN security source told AFP on condition of anonymity Tuesday that fire from an Israeli tank was responsible for that attack.

A day later, two more Indonesian peacekeepers died after an explosion struck a UNIFIL logistics convoy, also in southern Lebanon.

The father of one of the two fallen soldiers, 33-year-old Zulmi Aditya Iskandar, said this week he was shocked that peacekeepers were losing their lives in the conflict.

"We were really sad and regretful, because this is a UN troop, a peacekeeping troop, not deployed for war," 60-year-old Iskandarudin told reporters at his house in West Java province.

The bodies of the three peacekeepers are scheduled to arrive in Jakarta on Saturday evening, according to the military.

The Indonesian National Armed Forces has said it will deploy more than 750 personnel to Lebanon next month as part of the scheduled UNIFIL peacekeeping troop rotation.


Strike Kills One Iraqi Fighter near Syria Border

Mourners attend the funeral of members of Iraq's Hashed al-Shaabi, who were killed in an airstrike in the town of al‑Qaim near the Syrian border, amid heightened regional tensions due to the US-Israel conflict with Iran, in Baghdad, Iraq, March 12, 2026. REUTERS/Stringer
Mourners attend the funeral of members of Iraq's Hashed al-Shaabi, who were killed in an airstrike in the town of al‑Qaim near the Syrian border, amid heightened regional tensions due to the US-Israel conflict with Iran, in Baghdad, Iraq, March 12, 2026. REUTERS/Stringer
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Strike Kills One Iraqi Fighter near Syria Border

Mourners attend the funeral of members of Iraq's Hashed al-Shaabi, who were killed in an airstrike in the town of al‑Qaim near the Syrian border, amid heightened regional tensions due to the US-Israel conflict with Iran, in Baghdad, Iraq, March 12, 2026. REUTERS/Stringer
Mourners attend the funeral of members of Iraq's Hashed al-Shaabi, who were killed in an airstrike in the town of al‑Qaim near the Syrian border, amid heightened regional tensions due to the US-Israel conflict with Iran, in Baghdad, Iraq, March 12, 2026. REUTERS/Stringer

An attack killed one fighter from the former paramilitary coalition Hashed al-Shaabi on Saturday, the alliance said, blaming the US and Israel.

Iraq has been dragged into the war between the United States, Israel and Iran, with strikes targeting both US interests and pro-Iran groups in the country, reported AFP.

"This treacherous attack resulted in the martyrdom of one PMF fighter and the wounding of four others, as well as a member of the ministry of defense," said a short statement from the group, which is also known as the Popular Mobilization Forces (PMF), adding it was a "Zionist-American attack".

The PMF is a coalition of armed groups -- formed in 2014 to fight extremists-- that is now part of Iraq's regular army, but also contains pro-Iran factions who have a reputation for acting independently.

PMF positions have been repeatedly targeted since the outbreak of war, with the group consistently blaming the attacks on the US and Israel.

According to the group's statement, the latest attack targeted a position in western Anbar province of the 45th Brigade, which belongs to the US-blacklisted, pro-Iran Kataeb Hezbollah group.

Kataeb Hezbollah is part of the umbrella movement known as the Islamic Resistance in Iraq, which has been claiming daily attacks since the start of the war on US interests in Iraq and the region.

The Pentagon has said helicopters have carried out strikes against pro-Iran armed groups in Iraq during the war.

Washington has strongly denied claims it has targeted Iraqi security forces.