Hamas Weakened, Not Crushed a Year into War with Israel

People search for survivors and the bodies of victims through the rubble of buildings destroyed during Israeli bombardment, in Khan Younis in the southern Gaza Strip on October 26, 2023, amid the ongoing battles between Israel and the Palestinian group Hamas. (AFP)
People search for survivors and the bodies of victims through the rubble of buildings destroyed during Israeli bombardment, in Khan Younis in the southern Gaza Strip on October 26, 2023, amid the ongoing battles between Israel and the Palestinian group Hamas. (AFP)
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Hamas Weakened, Not Crushed a Year into War with Israel

People search for survivors and the bodies of victims through the rubble of buildings destroyed during Israeli bombardment, in Khan Younis in the southern Gaza Strip on October 26, 2023, amid the ongoing battles between Israel and the Palestinian group Hamas. (AFP)
People search for survivors and the bodies of victims through the rubble of buildings destroyed during Israeli bombardment, in Khan Younis in the southern Gaza Strip on October 26, 2023, amid the ongoing battles between Israel and the Palestinian group Hamas. (AFP)

Israel's military campaign to eradicate Hamas in retaliation for the October 7 attack has weakened it by killing several of its leaders and thousands of fighters, and by reducing swaths of the territory it rules to rubble.

But the Palestinian armed group has not been crushed outright, and a year on from its unprecedented attack on Israel, an end to its hold over Gaza remains elusive.

Hamas sparked the Gaza war by sending hundreds of fighters across the border into Israel on October 7, 2023, to attack communities in the south.

The attack resulted in the deaths of 1,205 people, most of them civilians, according to an AFP tally based on official Israeli figures, which include hostages killed in captivity.

Vowing to crush Hamas and bring the hostages home, Israel launched a military campaign in the Gaza Strip from the land, sea and air.

According to data provided by the health ministry of Hamas-run Gaza, the war has killed more than 41,000 people, the majority civilians. The United Nations has acknowledged these figures to be reliable.

- Dead leader -

In one of the biggest blows to the movement since it was founded in 1987 during the Palestinian intifada uprising, Hamas's leader Ismail Haniyeh was assassinated in Iran on July 31.

Both Hamas and its backer Iran accused Israel of killing Haniyeh, though Israel has not commented.

After Haniyeh's death, Hamas named Yahya Sinwar, whom Israel accuses of masterminding the October 7 attack, as its new leader.

On the Gaza battlefield, Israeli forces have aggressively pursued both Sinwar and Hamas military chief Mohammed Deif, whom Israel says it killed in an air strike.

Hamas says Deif is still alive.

"Commander Mohammed Deif is still giving orders," a source in Hamas's armed wing, the Ezzedine Al-Qassam Brigades, told AFP on condition of anonymity as he was not authorized to speak to media on the matter.

- 'Number one target' -

A senior Hamas official who also asked not to be named described Sinwar, who has not been seen in public since the start of the war, as a "supreme commander" who leads "both the military and political wings" of Hamas.

"A team is dedicated to his security because he is the enemy's number one target," the official said.

In August, Israeli officials reported the dead in Gaza included more than 17,000 Palestinian fighters.

A senior Hamas official acknowledged that "several thousand fighters from the movement and other resistance groups died in combat".

Despite its huge losses, the source in the group's armed wing still gloated over the intelligence and security failure that the October 7 attack was for Israel.

"It claims to know everything but on October 7 the enemy saw nothing," he said.

Israel has its own reading of where Hamas now stands.

In September, Defense Minister Yoav Gallant said that Hamas "as a military formation no longer exists".

Bruce Hoffman, a researcher at the Council on Foreign Relations, said that Israel's offensive has dealt a "grievous but not a crushing blow" to Hamas.

- 'Political suicide' -

Hamas has controlled Gaza and run its institutions single-handedly since 2007, after winning a legislative election a year earlier and defeating its Palestinian rivals Fatah in street battles.

Now, most of Gaza's institutions have either been damaged or destroyed.

Israel accuses Hamas of using schools, health facilities and other civilian infrastructure to conduct operations, a claim Hamas denies.

The war has left no part of Gaza safe from bombardment: schools turned into shelters for the displaced have been hit, as have healthcare facilities.

Hundreds of thousands of children have not gone to school in nearly a year, while universities, power plants, water pumping stations and police stations are no longer operational.

By mid-2024, Gaza's economy had been reduced to a "less than one-sixth of its 2022 level," according to a UN report that said it would take "decades to bring Gaza back" to its pre-October 7 state.

The collapse has fueled widespread discontent among Gaza's 2.4 million people, two-thirds of whom were already poor before the war, according to Mukhaimer Abu Saada, a political researcher at Al-Azhar University in Cairo.

"The criticism is harsh," he told AFP.

His colleague Jamal al-Fadi branded the October 7 attack as "political suicide for Hamas", which has now "found itself isolated".

Hamas political bureau member Bassem Naim dismissed the assessment.

"While some may not agree with Hamas's political views, the resistance and its project continue to enjoy widespread support," said Naim, who like several other self-exiled Hamas leaders lives in Qatar.



Iran's Revolutionary Guards Extend Control over Tehran's Oil Exports

Iranians drive as smog obscures the skyline in Tehran, Iran, 18 December 2024. EPA/ABEDIN TAHERKENAREH
Iranians drive as smog obscures the skyline in Tehran, Iran, 18 December 2024. EPA/ABEDIN TAHERKENAREH
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Iran's Revolutionary Guards Extend Control over Tehran's Oil Exports

Iranians drive as smog obscures the skyline in Tehran, Iran, 18 December 2024. EPA/ABEDIN TAHERKENAREH
Iranians drive as smog obscures the skyline in Tehran, Iran, 18 December 2024. EPA/ABEDIN TAHERKENAREH

Iran's Revolutionary Guards have tightened their grip on the country's oil industry and control up to half the exports that generate most of Tehran's revenue and fund its proxies across the Middle East, according to Western officials, security sources and Iranian insiders.

All aspects of the oil business have come under the growing influence of the Guards, from the shadow fleet of tankers that secretively ship sanctioned crude, to logistics and the front companies selling the oil, mostly to China, according to more than a dozen people interviewed by Reuters.
The extent of the Iranian Revolutionary Guard Corps' (IRGC) control over oil exports has not previously been reported.

Despite tough Western sanctions designed to choke Iran's energy industry, reimposed by former US President Donald Trump in 2018, Iran generates more than $50 billion a year in oil revenue, by far its largest source of foreign currency and its principal connection to the global economy.

Six specialists - Western officials and security experts as well as Iranian and trading sources - said the Guards control up to 50% of Iran's oil exports, a sharp increase from about 20% three years ago. The sources declined to be identified due to the sensitivity of the matter.

Three of the estimates were based on intelligence documents about Iranian shipping while others derived their figures from monitoring shipping activity by tankers and companies linked to the IRGC. Reuters was unable to determine the exact extent of the IRGC's control.

The IRGC's growing domination of the oil industry adds to its influence in all areas of Iran's economy and also makes it harder for Western sanctions to hit home - given the Guards are already designated as a terrorist organization by Washington.

Trump's return to the White House in January, however, could mean tougher enforcement of sanctions on Iran's oil industry. The country's oil minister said Tehran is putting measures in place to deal with any restrictions, without giving details.

As part of their expansion in the industry, the Guards have muscled in on the territory of state institutions such as the National Iranian Oil Company (NIOC) and its NICO oil trading subsidiary, according to four of the sources.

When sanctions hit Iran's oil exports years ago, the people running NIOC and the wider industry were specialized in oil rather than how to evade sanctions, added Richard Nephew, a former deputy special envoy for Iran at the US State Department.

"The IRGC guys were much, much better at smuggling, just terrible at oil field management, so they began to get a larger control of oil exports," said Nephew, who is now a researcher at Columbia University.
The IRGC, NIOC, NICO and Iran's foreign ministry did not respond to requests for comment.
RISK APPETITE
The IRGC is a powerful political, military and economic force with close ties to Supreme Leader Ali Khamenei.
The Guards exert influence in the Middle East through their overseas operations arm, the Quds Force, by providing money, weapons, technology and training to allies Hezbollah in Lebanon, Hamas in Gaza, Yemen's Houthis and militias in Iraq.
While Israel has killed a number of senior IRGC commanders over the past year, the oil specialists in its ranks have been able to continue their operations, two Western and two Iranian sources said.
The Iranian government began allotting oil, instead of cash, to the IRGC and Quds Force around 2013, according to Nephew.
The government was under budgetary pressure then because it was struggling to export oil due to Western sanctions imposed over Iran's nuclear program.
The IRGC proved adept at finding ways to sell oil even under sanctions pressure, said Nephew, who was actively involved in tracking Iranian oil activities then.
Iranian oil revenues hit $53 billion in 2023 compared with $54 billion in 2022, $37 billion in 2021 and $16 billion in 2020, according to estimates from the US government's Energy Information Administration.
This year, Tehran's oil output has topped 3.3 million barrels per day, the highest since 2018, according to OPEC figures, despite the Western sanctions.
China is Iran's biggest buyer of oil, with most going to independent refineries, and the IRGC has created front companies to facilitate trade with buyers there, all the sources said.
Oil export revenues are split roughly evenly between the IRGC and NICO, said one source involved in Iranian oil sales to China. The IRGC sells oil at a $1-$2 barrel discount to prices offered by NICO because buyers take a bigger risk buying from the Guards, the person said.
"It depends on a buyer's risk appetite, the higher ones will go for the IRGC, which the US designates as a terrorist group."
Two Western sources estimated that the IRGC offered an even bigger discount, saying it was $5 per barrel on average but could be as much as $8.
The oil is allocated directly by the government to the IRGC and Quds Force. It's then up to them to market and ship the oil - and work out a mechanism for disbursing the revenue, according to the sources and intelligence documents seen by Reuters.
NIOC gets a separate allocation.
CHINESE FRONT
One of the front companies used is China-based Haokun. Operated by former Chinese military officials, it remains an active conduit for IRGC oil sales into China, despite Washington hitting it with sanctions in 2022, two of the sources said.
The US Treasury said China Haokun Energy had bought millions of barrels of oil from the IRGC-Quds Force and was sanctioned for having "materially assisted, sponsored, or provided financial, material, or technological support for, or goods or services to or in support of, the IRGC-QF".
In one oil transaction dated March 16, 2021 involving Haokun and parties including Turkish company Baslam Nakliyat - which is under US sanctions for its trading links to the IRGC - a payment was processed via US bank JP Morgan and Turkish lender Vakif Katilim, according to the intelligence documents.
The transaction took place before the companies were sanctioned. Reuters has no indication JP Morgan or Vakif Katilim were aware of the Iranian connection - highlighting the risks of companies getting inadvertently caught up in the shadow trade.
JP Morgan declined to comment. Vakif Katilim said in a statement: "Our bank performs its activities within the framework of national and international banking rules."
Haokun declined to comment. Baslam did not respond to a request for comment.
'GHOST FLEET'
Quds Force commander Qassem Soleimani, who was killed in a US strike in Baghdad in 2020, had set up a clandestine headquarters and inaugurated that year for the unit's oil smuggling activities, initially staffed by former oil minister Rostam Ghasemi, according to the intelligence documents.
Reuters could not determine where all the oil money funneled through the IRGC goes. The IRGC headquarters and day-to-day operations has an annual budget of around $1 billion, according to assessments from two security sources tracking IRGC activities.
They estimated that the IRGC budget for Hezbollah was another $700 million a year.
"Exact figures remain undisclosed, as Hezbollah conceals the funds it receives. However, estimates are that its annual budget is approximately $700 million to $1 billion. Around 70%-80% of this funding comes directly from Iran," Shlomit Wagman, former director general of Israel’s Money Laundering and Terrorism Financing Prohibition Authority, said separately.
Hezbollah did not respond to a request for comment.
The former Secretary General of Hezbollah, Hassan Nasrallah, who was killed in an Israeli airstrike, said Iran provided the group's budget, including for salaries and weapons.
Iran's main tanker operator NITC, which previously played a key role in exports, also now provides services to the IRGC.
It executes ship-to-ship transfers of Iranian oil onto vessels operated by the IRGC to ship crude into China, according to sources and ship-tracking data. Such transfers are common practice to help disguise the origin of the oil tankers carry.
NITC did not respond to a request for comment.
In August, Israel's National Bureau for Counter Terror Financing, part of the country's defense ministry, imposed sanctions on 18 tankers it said were involved in transporting oil belonging to the Quds Force.
In October, the US Treasury slapped sanctions on 17 separate tankers it said formed part of Iran's "ghost fleet", outside of NITC vessels. It followed up with sanctions on a further 18 tankers on Dec. 3.