Gaza’s Bakeries Could Shut Down within a Week under Israel’s Blockade of All Food and Supplies

 Palestinians queue outside a bakery during Eid al-Fitr, which marks the end of the holy fasting month of Ramadan, in Gaza City on March 30, 2025. (AFP)
Palestinians queue outside a bakery during Eid al-Fitr, which marks the end of the holy fasting month of Ramadan, in Gaza City on March 30, 2025. (AFP)
TT
20

Gaza’s Bakeries Could Shut Down within a Week under Israel’s Blockade of All Food and Supplies

 Palestinians queue outside a bakery during Eid al-Fitr, which marks the end of the holy fasting month of Ramadan, in Gaza City on March 30, 2025. (AFP)
Palestinians queue outside a bakery during Eid al-Fitr, which marks the end of the holy fasting month of Ramadan, in Gaza City on March 30, 2025. (AFP)

Gaza’s bakeries will run out of flour for bread within a week, the UN says. Agencies have cut food distributions to families in half. Markets are empty of most vegetables. Many aid workers cannot move around because of Israeli bombardment.

For four weeks, Israel has shut off all sources of food, fuel, medicine and other supplies for the Gaza Strip’s population of more than 2 million Palestinians. It’s the longest blockade yet of Israel’s 17-month-old campaign against Hamas, with no sign of it ending. Many are going hungry during the normally festive Eid al-Fitr, a major Muslim holiday.

Aid workers are stretching out the supplies they have but warn of a catastrophic surge in severe hunger and malnutrition. Eventually, food will run out completely if the flow of aid is not restored, because the war has destroyed almost all local food production in Gaza.

"We depend entirely on this aid box," said Shorouq Shamlakh, a mother of three collecting her family’s monthly box of food from a UN distribution center in Jabaliya in northern Gaza. She and her children reduce their meals to make it last a month, she said. "If this closes, who else will provide us with food?"

The World Food Program said Thursday that its flour for bakeries is only enough to keep producing bread for 800,000 people a day until Tuesday and that its overall food supplies will last a maximum of two weeks. As a "last resort" once all other food is exhausted, it has emergency stocks of fortified nutritional biscuits for 415,000 people.

Fuel and medicine will last weeks longer before hitting zero. Hospitals are rationing antibiotics and painkillers. Aid groups are shifting limited fuel supplies between multiple needs, all indispensable — trucks to move aid, bakeries to make bread, wells and desalination plants to produce water, hospitals to keep machines running.

"We have to make impossible choices. Everything is needed," said Clémence Lagouardat, the Gaza response leader for Oxfam International, speaking from Deir al-Balah in central Gaza at a briefing Wednesday. "It’s extremely hard to prioritize."

Compounding the problems, Israel resumed its military campaign on March 18 with bombardment that has killed hundreds of Palestinians, mostly women and children, according to health officials. It has hit humanitarian facilities, the UN says. New evacuation orders have forced more than 140,000 Palestinians to move yet again.

But Israel has not resumed the system for aid groups to notify the military of their movements to ensure they were not hit by bombardment, multiple aid workers said. As a result, various groups have stopped water deliveries, nutrition for malnourished children and other programs because it's not safe for teams to move.

COGAT, the Israeli military body in charge of coordinating aid, said the system was halted during the ceasefire. Now it is implemented in some areas "in accordance with policy and operational assessments ... based on the situation on the ground," COGAT said, without elaborating.

Rising prices leave food unaffordable

During the 42 days of ceasefire that began in mid-January, aid groups rushed in significant amounts of aid. Food also streamed into commercial markets.

But nothing has entered Gaza since Israel cut off that flow on March 2. Israel says the siege and renewed military campaign aim to force Hamas to accept changes in their agreed-on ceasefire deal and release more hostages.

Fresh produce is now rare in Gaza’s markets. Meat, chicken, potatoes, yogurt, eggs and fruits are completely gone, Palestinians say.

Prices for everything else have skyrocketed out of reach for many Palestinians. A kilo (2 pounds) of onions can cost the equivalent of $14, a kilo of tomatoes goes for $6, if they can be found. Cooking gas prices have spiraled as much as 30-fold, so families are back to scrounging for wood to make fires.

"It’s totally insane," said Abeer al-Aker, a teacher and mother of three in Gaza City. "No food, no services. ... I believe that the famine has started again. "

Families depend even more on aid

At the distribution center in Jabaliya, Rema Megat sorted through the food ration box for her family of 10: rice, lentils, a few cans of sardines, a half kilo of sugar, two packets of powdered milk.

"It’s not enough to last a month," she said. "This kilo of rice will be used up in one go."

The UN has cut its distribution of food rations in half to redirect more supplies to bakeries and free kitchens producing prepared meals, said Olga Cherevko, spokesperson for the UN humanitarian agency, known as OCHA.

The number of prepared meals has grown 25% to 940,000 meals a day, she said, and bakeries are churning out more bread. But that burns through supplies faster.

Once flour runs out soon, "there will be no bread production happening in a large part of Gaza," said Gavin Kelleher, with the Norwegian Refugee Council.

UNRWA, the main UN agency for Palestinians, only has a few thousand food parcels left and enough flour for a few days, said Sam Rose, the agency's acting director in Gaza.

Gaza Soup Kitchen, one of the main public kitchens, can’t get any meat or much produce, so they serve rice with canned vegetables, co-founder Hani Almadhoun said.

"There are a lot more people showing up, and they’re more desperate. So people are fighting for food," he said.

Israel shows no sign of lifting the siege

The United States pressured Israel to let aid into Gaza at the beginning of the war in October 2023, after Israel imposed a blockade of about two weeks. This time, it has supported Israel’s policy.

Rights groups have called it a "starvation policy" that could be a war crime.

Israeli Foreign Minister Gideon Saar told a news conference Monday that "Israel is acting in accordance with international law."

He accused Hamas of stealing aid and said Israel is not required to let in supplies if it will be diverted to combatants.

He gave no indication of whether the siege could be lifted but said Gaza had enough supplies, pointing to the aid that flowed in during the ceasefire.

Hunger and hopelessness are growing

Because its teams can’t coordinate movements with the military, Save the Children suspended programs providing nutrition to malnourished children, said Rachael Cummings, the group’s humanitarian response leader in Gaza.

"We are expecting an increase in the rate of malnutrition," she said. "Not only children — adolescent girls, pregnant women."

During the ceasefire, Save the Children was able to bring some 4,000 malnourished infants and children back to normal weight, said Alexandra Saif, the group’s head of humanitarian policy.

About 300 malnourished patients a day were coming into its clinic in Deir al-Balah, she said. The numbers have plunged — to zero on some days — because patients are too afraid of bombardment, she said.

The multiple crises are intertwined. Malnutrition leaves kids vulnerable to pneumonia, diarrhea and other diseases. Lack of clean water and crowded conditions only spread more illnesses. Hospitals overwhelmed with the wounded can’t use their limited supplies on other patients.

Aid workers say not only Palestinians, but their own staff have begun to fall into despair.

"The world has lost its compass," UNRWA’s Rose said. "There’s just a feeling here that anything could happen, and it still wouldn’t be enough for the world to say, this is enough."



Cash Shortage Squeezes Gaza Residents

Palestinian children queue for a hot meal at a charity kitchen in Gaza City on April 30, 2025. (Photo by Omar AL-QATTAA / AFP)
Palestinian children queue for a hot meal at a charity kitchen in Gaza City on April 30, 2025. (Photo by Omar AL-QATTAA / AFP)
TT
20

Cash Shortage Squeezes Gaza Residents

Palestinian children queue for a hot meal at a charity kitchen in Gaza City on April 30, 2025. (Photo by Omar AL-QATTAA / AFP)
Palestinian children queue for a hot meal at a charity kitchen in Gaza City on April 30, 2025. (Photo by Omar AL-QATTAA / AFP)

Even when food is available, many in Gaza cannot afford to buy it, as the enclave suffers from a severe cash shortage. Israel has blocked the entry of new currency into the territory since October 7, 2023, leaving residents at the mercy of money changers who have hiked exchange rates on remittances to exorbitant levels.

Palestinians in Gaza primarily rely on the Israeli shekel for daily transactions, which used to enter the strip through banks operating under the Palestinian Monetary Authority, supplied by the Bank of Israel.

Banking operations in Gaza have ground to a halt since the start of the war, and no fresh banknotes have entered the enclave, worsening an already dire humanitarian situation. Residents say they have been left at the mercy of traders who exploit the cash shortage to impose arbitrary rules on currency use.

'The Traders’ Game'

Dubbed “the traders’ game” by many in Gaza, the practice began with merchants refusing to accept worn-out banknotes and certain coins, such as the 10-shekel piece (worth about $3), which have all but vanished from local markets. Some vendors now reject older versions of bills - like the brown-hued 100-shekel note (around $28) - insisting instead on the newer yellow ones. The same rules apply to various denominations.

Speaking to Asharq Al-Awsat, Hani Jahjouh, a resident of al-Shati Camp west of Gaza City, said vendors selling vegetables and essential goods - when available - often refuse worn banknotes or specific coins, claiming they are counterfeit or easily faked.

“This just adds to the burden of people already crushed by impossible living conditions,” said Jahjouh, 59. “We don’t have solutions. We don’t even know where to get the money they’re asking for.”

Only a very small number of traders accept digital payments, and even then, residents say, they impose tough conditions - such as inflated prices or demands for partial payment in cash.

Displaced Gazan Duaa Ismail, originally from Beit Hanoun in the north of the enclave, says even when goods are available, she cannot afford them due to a lack of cash.

“We’re suffering badly from a shortage of money, and that makes it even harder to get basic items like flour and sugar - when they’re even in stock,” she told Asharq Al-Awsat from a shelter in Gaza City’s Sheikh Radwan neighborhood.

Ismail said that during a brief ceasefire, some traders had accepted digital payments through mobile apps. “But once the war resumed, things worsened, and they stopped taking them altogether,” she said.

Salaries They Can’t Spend

The crisis has also hit public-sector employees, private workers, and international aid staff, many of whom receive salaries through bank transfers or mobile wallets but have no way of accessing their funds with banks shuttered. They are forced to rely on currency dealers or traders with access to physical cash.

Amjad Hasballah, an employee with the Palestinian Authority, said he has been cashing his monthly salary through mobile banking apps for over a year and a half, paying a steep commission to money traders in return.

“When I received my last salary in early April, the commission had reached 30%,” he said.

Speaking to Asharq Al-Awsat, Hasballah explained that at the start of the war, commissions hovered around 5%, but they spiked during Ramadan, peaking at 35% around Eid al-Fitr, before dipping slightly to 30%.

“My salary is just 2,800 shekels. When I pay a 30% fee, there’s barely anything left,” he said bitterly. “At this point, the traders might as well take the whole salary and just give us pocket money.”

Caught in a Trap

Jamal Al-Mashal, a father of six who lost two children in an Israeli airstrike, said he lives off 1,000 shekels (about $280) in monthly international aid. But even that amount is slashed by up to 30% when he exchanges it through local traders.

“People in Gaza have become a cash trap for currency dealers and big traders,” he said. “They’re exploiting our desperation, and it’s like a harvest season for them - raking in profits while we suffer.”

The poorest and most vulnerable are hit hardest. Many international agencies rely on electronic payment platforms to distribute aid to these groups, who often have no access to physical currency.

No Oversight, No Restraint

The Hamas-run government has made attempts to cap commission rates at 5%, but those efforts have largely failed. Officials blame ongoing Israeli targeting of personnel involved in regulating the process.

Money changers defend the high fees, arguing that the lack of currency entering Gaza leaves them with limited options.

“We raise commission rates because there’s simply no new cash coming in,” one trader told Asharq Al-Awsat. “Once money is distributed to the public, we have no way of getting it back. What goes out doesn’t return.”

He added that while ministries and law enforcement have tried to impose limits, traders view the rules as unfair. “There have been attempts to regulate us, but we haven’t complied - they’re asking too much from us under impossible conditions,” he said.

Some municipal leaders and community elders in Gaza have recently appealed to the Palestinian Monetary Authority in Ramallah to intervene in what they describe as unchecked profiteering by traders controlling access to scarce cash.

They have called for greater oversight, including monitoring and freezing the traders’ bank accounts.

The authority has repeatedly warned against exploitation of civilians and threatened to take action. But in practice, traders continue to charge hefty commissions on money transfers with little deterrence.

The Authority has urged residents to use its Instant Payment System available through mobile banking apps, which it says offers a practical alternative to cash, promotes digital payments, and enables real-time transactions.

Cash Squeeze Tightens Further

Despite the hardship, Israel is considering new measures that could further tighten the financial stranglehold on Gaza. One proposal involves withdrawing the 200-shekel banknote (worth about $55) from circulation, on the grounds that Hamas allegedly uses it to pay salaries to its fighters.

The suggestion was reportedly made by Israeli Foreign Minister Gideon Sa’ar to Bank of Israel Governor Amir Yaron, who rejected the move. Other proposals include voiding the serial numbers of banknotes believed to be inside Gaza, effectively rendering them worthless, a step that could deliver a significant financial blow to Hamas.

According to a report published Tuesday by the Israeli daily Maariv, the proposal has backing from several ministers and economists both within and outside the central bank.

The report estimated that around 10 billion shekels in high-denomination bills - 100 and 200 shekels - remain in circulation within Gaza. These notes entered the enclave over the years through official banking channels supplied by the Bank of Israel.

Economists told Maariv that Gaza residents receive an estimated 150 to 200 million shekels each month through digital transfers from aid organizations and the Palestinian Authority. That money is then converted into cash within markets dominated by Hamas and supported by a network of money changers.

Israeli security sources estimate that Hamas has accumulated up to five billion shekels since the war began and has spent nearly one billion shekels on salaries for fighters and new recruits. The sources claim Hamas has profited significantly by reselling aid and fuel at inflated prices during the conflict.