2021 Notebook: The War in Gaza and the Razing of AP's Office

FILE - Palestinians run away from tear gas during clashes with Israeli security forces at the Al Aqsa Mosque compound in Jerusalem's Old City Monday, May 10, 2021. (AP Photo/Mahmoud Illean, File)
FILE - Palestinians run away from tear gas during clashes with Israeli security forces at the Al Aqsa Mosque compound in Jerusalem's Old City Monday, May 10, 2021. (AP Photo/Mahmoud Illean, File)
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2021 Notebook: The War in Gaza and the Razing of AP's Office

FILE - Palestinians run away from tear gas during clashes with Israeli security forces at the Al Aqsa Mosque compound in Jerusalem's Old City Monday, May 10, 2021. (AP Photo/Mahmoud Illean, File)
FILE - Palestinians run away from tear gas during clashes with Israeli security forces at the Al Aqsa Mosque compound in Jerusalem's Old City Monday, May 10, 2021. (AP Photo/Mahmoud Illean, File)

An 11-day war between Israel and Gaza’s ruling Hamas militant group in May left over 260 Palestinians and 13 Israelis dead.

It was the fourth war between the bitter enemies since Hamas seized control of Gaza in 2007, with fighting erupting after weeks of tensions and clashes between Palestinian demonstrators and Israeli police in contested east Jerusalem.

Israeli aircraft struck hundreds of targets in Gaza, while Hamas launched over 4,000 rockets at Israel. In a first, the violence also spilled over into clashes between Jews and Arabs inside Israel as well.

In Gaza, tens of thousands of homes were damaged and more than 2,000 others were destroyed. Israel has eased its blockade of Gaza as part of Egyptian-led efforts to broker a longer-term cease-fire, but reconstruction efforts have yet to get off the ground. In rocket-scarred southern Israel, residents remain jittery.

On the sixth day of the war, the Israeli air force bombed the 12-story al-Jalaa tower, roughly an hour after ordering all occupants to evacuate. No one was injured, but the building was destroyed. The building was home to offices belonging to The Associated Press, the Al-Jazeera satellite channel as well as dozens of families. Israel has said it had evidence Hamas was using the building for military purposes, though it has not released any evidence publicly to back the claim.

Here, some AP journalists involved in the coverage reflect on the story and their own experiences.

FARES AKRAM, correspondent, Gaza City, Gaza Strip:
The destruction of the AP office felt like an attack on all of us. The office had been our professional home for years — and most of us had been sleeping there throughout the war, wrongly thinking that it was a rare safe place in Gaza.

Just days earlier, my family farmhouse was also destroyed by a bomb from an Israeli fighter jet. The house, located near the Israeli frontier in northern Gaza, had provided a precious escape from Gaza’s concrete jungle of homes and dirty streets.

After the war, I left Gaza through Egypt and went to visit my wife and children who have been living in Canada. I had not seen them for nearly two years due to coronavirus lockdowns. The four-month visit was the longest time I've ever stayed outside the tiny, impoverished crowded land on the Mediterranean that I call home.
Six months later, I wish I could say that things are getting better. But nothing has improved.

Large-scale reconstruction has yet to start. The nearly 15-year blockade that Israel and Egypt maintain on Gaza is still in place. Efforts to reach a deep, long-term cease-fire are stalled, and fears of another war breaking out are widespread. The process of rebuilding our office is moving slowly.
The crater made by the bomb on our farmhouse is still there, and the house is still in ruins.

It was my favorite spot in Gaza, something to look forward to on the weekends. It was where I could spend cold winter nights warmed by a burning bonfire or where my family would bake pastries and other dishes on the wood-fired clay oven. I self-isolated there during the lockdown because of the feeling of freedom walking in the field or feeding the chickens.

All of these lovely things have become a memory.

JOSEF FEDERMAN, bureau chief, Jerusalem:
The airstrike happened on the sixth day of the war. During those first few days, we had worked out a nice little routine. Karin Laub, the Mideast news director, would keep an eye on the story in the mornings while I would rest and do TV interviews. Then I would come in and handle the story and write the night's big roundup at the end of the day.

The airstrike happened on a Saturday, and it was actually kind of quiet. I went out and did a TV interview for Chinese television. Whenever I did TV, I would turn my phone off and put it down so I could focus on the interview. So, I turned my phone off for about 10 minutes.

When I turned it back on, there were eight missed calls from the office. I thought, “What the heck is going on?” And then as I was staring at my phone, it rang again and it was Karin and she was frantic. We had just received a warning from the Israeli army that the building with our Gaza office was going to be blown up. “We've been given an hour to clear out," she said, before asking me to call my contacts to see if we could stop it.

A couple of days earlier, I had given the Israeli military the GPS coordinates of our office to make sure it wasn’t accidentally bombed. So I called them to see if they could stop this. The spokesman was very nice, asked for more details about the building and said he would make some phone calls to see if anything could be done.

I then called the Foreign Ministry, telling the spokesman that this would be a public relations disaster if Israel destroyed the AP office. He also promised to make some calls and see if he could help.

Then, I called the prime minister's office and got a very different reply. There were no offers of help. The spokesman merely said: “Make sure you get your people out of there and they are safe.”

That's when I knew the office was going to get blown up.

I rushed home, flipped on the TV and watched our office get blown up in real time on live TV.

This wasn’t the worst thing we’ve dealt with. In 2014, two people were killed in an accident, an explosion in Gaza, and another staffer was badly wounded. So, all things considered, this wasn’t the worst outcome. At least everybody was safe.

They had an hour to get out of there. They grabbed what they could. And the amazing thing is, they went to work. They ran down the stairs, they got out of the building and they took incredible footage: They interviewed people, they spoke to the owner of the building who was also pleading with the army not to do this, they got incredible photos. We wrote some great stories and a first-person account. The resilience is amazing.

It’s not easy, but everybody kind of knows what to do. They spring to life, everybody knows their job, and they just go to work and take care of business.



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)
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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.