Netanyahu Faces Pressure to End Fighting in Gaza after Killing of Sinwar

Israel's Prime Minister Benjamin Netanyahu addresses the 79th United Nations General Assembly at UN headquarters in New York, US, September 27, 2024. (Reuters)
Israel's Prime Minister Benjamin Netanyahu addresses the 79th United Nations General Assembly at UN headquarters in New York, US, September 27, 2024. (Reuters)
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Netanyahu Faces Pressure to End Fighting in Gaza after Killing of Sinwar

Israel's Prime Minister Benjamin Netanyahu addresses the 79th United Nations General Assembly at UN headquarters in New York, US, September 27, 2024. (Reuters)
Israel's Prime Minister Benjamin Netanyahu addresses the 79th United Nations General Assembly at UN headquarters in New York, US, September 27, 2024. (Reuters)

The killing of Israel's most wanted enemy Yahya Sinwar has been hailed as vindication for Prime Minister Benjamin Netanyahu, but in a country weary after a year of war it also raises pressure on him to end the fighting and save the hostages still in Gaza.

Netanyahu himself described Sinwar's death as "the beginning of the end" to a conflict that has spread to Lebanon and Yemen, and said it could end if Hamas lays down its arms and return the 101 Israeli and foreign hostages held in Gaza.

With Sinwar joining a growing list of Palestinian and Lebanese militant leaders killed by Israel over recent months, the fear that a deal would reward the architect of the Hamas-led Oct. 7 attacks on Israel has gone.

"I think what we have now is an opportunity to use this moment in Gaza to close the front in Gaza," said Shira Efron, Senior Director of Policy Research at the pro-Israel Diane and Guilford Glazer Foundation.

"I mean, you need to remember that this goes into the kishka (the guts) of Israeli society, they've avenged the mastermind Sinwar," she said.

Yet it remains unclear how Hamas will respond to the death of their leader, filmed by an Israeli drone sitting badly wounded in a ruined building in Gaza before his body was recovered and taken to Israel for tests that confirmed his identity.

On Friday, the deputy head of Hamas Khalil Al-Hayya said Israeli hostages would not be returned until Israeli "aggression" ended and its forces withdrew.

Some of Netanyahu's hardline political allies, including his Finance Minister Bezalel Smotrich, said Israel should not stop before the "complete surrender" of Hamas.

But with the White House talking about a potential "inflection point" in the war, even many supporters of Israel's hitherto uncompromising approach said there was an opportunity to end the fighting.

"I think Netanyahu said the right thing last night. Give us the hostages and - when everyone, the hostages, will return - we'll leave," said Erez Goldman, a Jerusalem resident, as he absorbed the news the following day.

A significant section of Israeli opinion, including Netanyahu, has always maintained that the only way to achieve peace is by inflicting military defeats on their enemies, even if that comes at the cost of upsetting their allies.

Sinwar's death was seen by many as vindication of Israel's refusal to bow to international pressure earlier this year not to send ground troops into the city of Rafah, which was at the time the refuge for more than a million Palestinians displaced by the fighting.

"This is the first thing that came to mind when Sinwar was taken out in Rafah," one senior official said on Friday.

Netanyahu has resisted pressure for months from families of the hostages and from world leaders, including US President Joe Biden, to agree a ceasefire deal in Gaza. There were more such calls on Friday.

'OFF-RAMP'

Netanyahu's political fortunes, at rock-bottom last year in the aftermath of the bloodiest day in Israel's history, have revived steadily since, particularly as a series of militant leaders have been assassinated.

Mohammed Deif, Hamas' longstanding military commander, was killed in Gaza in July and in the same month, the movement's political leader Ismail Haniyeh was assassinated in Tehran.

Two months later Hezbollah leader Hassan Nasrallah was killed in Beirut, one of a string of leaders from the Iranian-backed group killed in a wave of Israeli airstrikes.

The addition of Sinwar to the list could give Netanyahu a potential "off-ramp" from Gaza, said Carmiel Arbit, non-resident senior fellow at the Atlantic Council.

"But Sinwar's death alone does not guarantee the circumstances necessary for Netanyahu to declare an end to the war as so many hope," she said.

Hostage families feel that after ceasefire talks apparently ran into the sand weeks ago, there is no time to waste. "It's an opportunity that we might not have again," said Daniel Lifshitz, whose grandfather Oded Lifshitz is still held in Gaza.

Much will depend on who succeeds Sinwar, whose death in combat was hailed by many Palestinians as a heroic act of defiance against Israel that should inspire further resistance.

Israel has said it must maintain security control over Gaza when combat operations end. But it has otherwise not revealed any detailed ideas for running the enclave beyond rejecting any role for Hamas or the Palestinian Authority.

After a year of war, the enclave is in ruins, with more than 42,000 Palestinians dead and most of the population displaced. Reconstruction will take years, requiring billions of dollars and heavy international support.

On the Israeli side, after Hamas-led gunmen stormed into Israel on Oct 7, 2023, killing 1,200 people and taking 251 hostages, few are willing to trust Hamas even if Sinwar is gone.

But even the chairperson of Kibbutz Be'eri, a community close to the Gaza Strip that lost one in 10 of its population on Oct 7, said the chance offered by Sinwar's death should be taken.

"There is an opportunity," said Amit Solvi. "And Israel has to take this opportunity in both hands. And evolve that into a diplomatic agreement."



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.