Israelis and Palestinians End Dark Year, With No End in Sight to War

A Palestinian man carries the body of a child after it was unearthed from the rubble of a building following an Israeli strike on the Zawayda area of the Gaza Strip - AFP
A Palestinian man carries the body of a child after it was unearthed from the rubble of a building following an Israeli strike on the Zawayda area of the Gaza Strip - AFP
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Israelis and Palestinians End Dark Year, With No End in Sight to War

A Palestinian man carries the body of a child after it was unearthed from the rubble of a building following an Israeli strike on the Zawayda area of the Gaza Strip - AFP
A Palestinian man carries the body of a child after it was unearthed from the rubble of a building following an Israeli strike on the Zawayda area of the Gaza Strip - AFP

Israelis and Palestinians end a dark year on Sunday, with no end in sight to the deadliest military offensive on Gaza, triggered by Hamas' October 7 attack on Israel.

There has been no respite from Israel's air raids, artillery fire or ground fighting with Hamas in the Gaza Strip, to the despair of Palestinians surviving the onslaught.

"We were hoping that 2024 would arrive under better auspices and that we would be able to celebrate the new year at home with our families," said Mahmoud Abou Shahma in a camp for displaced people in Rafah, on the Egyptian border.

"We hope that the war will end and that we will be able to return to our homes and live in peace", the 33-year-old from Khan Yunis told AFP.

Gaza's Hamas-run health ministry says the Israeli military campaign has killed at least 21,672 people, mostly women and children -- by far the heaviest death toll of any Israeli operation.

On Sunday the ministry reported numerous deaths in overnight strikes on central Gaza's Zawayda and the nearby Al-Mughazi refugee camp.

The Israeli army says 170 soldiers have been killed in combat inside Gaza.

An Israeli siege imposed after October 7, following years of crippling blockade, has led to dire shortages of food, safe water, fuel and medicine in Gaza, with aid convoys able to offer only sporadic relief.

The UN says more than 85 percent of Gaza's 2.4 million people have fled their homes.

The World Health Organization (WHO) has warned of the growing threat of infectious diseases and the UN says Gaza is "just weeks away" from famine.

Prime Minister Benjamin Netanyahu said Saturday that Israel's war against Hamas will last for "many months" -- until the Palestinian militant group has been eliminated.

"We will guarantee that Gaza will no longer pose a threat to Israel," he told a news conference.

As Netanyahu spoke, more than a thousand relatives and supporters of the hostages demonstrated in Tel Aviv to maintain pressure on his government to bring their loved ones home.

"I hope there's going to be another deal, even a partial deal or some will be released. I'm trying to hold on to every shred of hope," said Nir Shafran, 45.

Gal Gilboa-Dalal has been traumatized since the rave he attended with his brother Guy was stormed by Hamas commandos on October 7.

"I was there with him and he was taken away the minute I wasn't with him. So I went with him and I came back without him and it's like time has stopped ever since," he said.

In Khan Yunis, medics at Nasser hospital described severe shortages.

"The hospital is receiving a lot more (patients) than its capacity," doctor Ahmad Abu Mustafa said in footage shared by the WHO.

"The beds are full... and we are basically short on all sorts of medicine supplies."

The fighting has put 23 hospitals and 53 health centers out of service, while 104 ambulances have been destroyed, the health ministry said.

In Zawayda, Palestinians pulled the body of a child from under the rubble on Saturday after an Israeli strike.

"We pulled (out) nine martyrs, who were members of a very peaceful family. Two adjacent houses were targeted," said the area's civil defence director, Rami al-Aidi.

International mediators -- who last month brokered a one-week truce that saw more than 100 hostages released and some aid enter Gaza -- continue in their efforts to secure a new pause in fighting.

US news outlet Axios and Israeli website Ynet, both citing unnamed Israeli officials, reported that Qatari mediators had told Israel that Hamas was prepared to resume talks on new hostage releases in exchange for a ceasefire.

A Hamas delegation was in Cairo on Friday to discuss an Egyptian plan proposing renewable ceasefires, a staggered release of hostages for Palestinian prisoners, and ultimately an end to the war, sources close to Hamas said.

Islamic Jihad, another armed group fighting alongside Hamas, said on Saturday that Palestinian factions were "in the process" of evaluating the Egyptian proposal.

A response will come "within days", the group's chief negotiator, Muhammad al-Hindi, said.

Asked about the negotiations on Saturday, Netanyahu said Hamas had been "giving all kinds of ultimatums that we didn't accept".

"We are seeing a certain shift (but) I don't want to create an expectation."



To Get Their Own Cash, People in Gaza Must Pay Middlemen a 40% Cut

A destroyed branch of the Bank of Palestine in the Tal al-Hawa neighborhood of Gaza City is seen Wednesday, July 9, 2025. (AP)
A destroyed branch of the Bank of Palestine in the Tal al-Hawa neighborhood of Gaza City is seen Wednesday, July 9, 2025. (AP)
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To Get Their Own Cash, People in Gaza Must Pay Middlemen a 40% Cut

A destroyed branch of the Bank of Palestine in the Tal al-Hawa neighborhood of Gaza City is seen Wednesday, July 9, 2025. (AP)
A destroyed branch of the Bank of Palestine in the Tal al-Hawa neighborhood of Gaza City is seen Wednesday, July 9, 2025. (AP)

Cash is the lifeblood of the Gaza Strip’s shattered economy, and like all other necessities in this war-torn territory — food, fuel, medicine — it is in extremely short supply.

With nearly every bank branch and ATM inoperable, people have become reliant on an unrestrained network of powerful cash brokers to get money for daily expenses and commissions on those transactions have soared to about 40%.

"The people are crying blood because of this," said Ayman al-Dahdouh, a school director living in Gaza City. "It’s suffocating us, starving us."

At a time of surging inflation, high unemployment and dwindling savings, the scarcity of cash has magnified the financial squeeze on families — some of whom have begun to sell their possessions to buy essential goods.

The cash that is available has even lost some of its luster. Palestinians use the Israeli currency, the shekel, for most transactions. Yet with Israel no longer resupplying the territory with newly printed bank notes, merchants are increasingly reluctant to accept frayed bills.

Gaza’s punishing cash crunch has several root causes, experts say.

To curtail Hamas’ ability to purchase weapons and pay its fighters, Israel stopped allowing cash to enter Gaza at the start of the war. Around the same time, many wealthy families in Gaza withdrew their money from banks and then fled the territory. And rising fears about Gaza’s financial system prompted foreign businesses selling goods into the territory to demand cash payments.

As Gaza’s money supply dwindled and civilians’ desperation mounted, cash brokers' commissions — around 5% at the start of the war — skyrocketed.

Someone needing cash transfers money electronically to a broker and moments later is handed a fraction of that amount in bills. Many brokers openly advertise their services, while others are more secretive. Some grocers and retailers have also begun exchanging cash for their customers.

"If I need $60, I need to transfer $100," said Mohammed Basheer al-Farra, who lives in southern Gaza after being displaced from Khan Younis. "This is the only way we can buy essentials, like flour and sugar. We lose nearly half of our money just to be able to spend it."

In 2024, inflation in Gaza surged by 230%, according to the World Bank. It dropped slightly during the ceasefire that began in January, only to shoot up again after Israel backed out of the truce in March.

Cash touches every aspect of life in Gaza

About 80% of people in Gaza were unemployed at the end of 2024, according to the World Bank, and the figure is likely higher now. Those with jobs are mostly paid by direct deposits into their bank accounts.

But "when you want to buy vegetables, food, water, medication -- if you want to take transportation, or you need a blanket, or anything — you must use cash," al-Dahdouh said.

Shahid Ajjour’s family has been living off of savings for two years after the pharmacy and another business they owned were ruined by the war.

"We had to sell everything just to get cash," said Ajjour, who sold her gold to buy flour and canned beans. The family of eight spends the equivalent of $12 every two days on flour; before the war, that cost less than $4.

Sugar is very expensive, costing the equivalent of $80-$100 per kilogram (2.2 pounds), multiple people said; before the war, that cost less than $2.

Gasoline is about $25 a liter, or roughly $95 a gallon, when paying the lower, cash price.

Bills are worn and unusable

The bills in Gaza are tattered after 21 months of war.

Money is so fragile, it feels as if it is going to melt in your hands, said Mohammed al-Awini, who lives in a tent camp in southern Gaza.

Small business owners said they were under pressure to ask customers for undamaged cash because their suppliers demand pristine bills from them.

Thaeir Suhwayl, a flour merchant in Deir al-Balah, said his suppliers recently demanded he pay them only with brand new 200-shekel ($60) bank notes, which he said are rare. Most civilians pay him with 20-shekel ($6) notes that are often in poor condition.

On a recent visit to the market, Ajjour transferred the shekel equivalent of around $100 to a cash broker and received around $50 in return. But when she tried to buy some household supplies from a merchant, she was turned away because the bills weren’t in good condition.

"So the worth of your $50 is zero in the end," she said.

This problem has given rise to a new business in Gaza: money repair. It costs between 3 and 10 shekels ($1-$3) to mend old bank notes. But even cash repaired with tape or other means is sometimes rejected.

People are at the mercy of cash brokers

After most of the banks closed in the early days of the war, those with large reserves of cash suddenly had immense power.

"People are at their mercy," said Mahmoud Aqel, who has been displaced from his home in southern Gaza. "No one can stop them."

The war makes it impossible to regulate market prices and exchange rates, said Dalia Alazzeh, an expert in finance and accounting at the University of the West of Scotland. "Nobody can physically monitor what’s happening," Alazzeh said.

A year ago, the Palestine Monetary Authority, the equivalent of a central bank for Gaza and the West Bank, sought to ease the crisis by introducing a digital payment system known as Iburaq. It attracted half a million users, or a quarter of the population, according to the World Bank, but was ultimately undermined by merchants insisting on cash.

Israel sought to ramp up financial pressure on Hamas earlier this year by tightening the distribution of humanitarian aid, which it said was routinely siphoned off by militants and then resold.

Experts said it is unclear if the cash brokers’ activities benefit Hamas, as some Israeli analysts claim.

The war has made it more difficult to determine who is behind all sorts of economic activity in the territory, said Omar Shabaan, director of Palthink for Strategic Studies, a Gaza-based think tank.

"It's a dark place now. You don't know who is bringing cigarettes into Gaza," he said, giving just one example. "It's like a mafia."

These same deep-pocketed traders are likely the ones running cash brokerages, and selling basic foodstuffs, he said. "They benefit by imposing these commissions," he said.

Once families run out of cash, they are forced to turn to humanitarian aid.

Al-Farra said that is what prompted him to begin seeking food at an aid distribution center, where it is common for Palestinians to jostle over one other for sacks of flour and boxes of pasta.

"This is the only way I can feed my family," he said.