Iran-Backed Gaza Factions Face Financial Strain, Fear Collapse

Ziyad al-Nakhalah, head of the Palestinian Islamic Jihad movement (seated right), alongside Naim Qassem, secretary-general of Lebanon’s Hezbollah, and senior Iranian military officials during the funeral of late Hamas leader Ismail Haniyeh in Tehran, August 2024 (Reuters)
Ziyad al-Nakhalah, head of the Palestinian Islamic Jihad movement (seated right), alongside Naim Qassem, secretary-general of Lebanon’s Hezbollah, and senior Iranian military officials during the funeral of late Hamas leader Ismail Haniyeh in Tehran, August 2024 (Reuters)
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Iran-Backed Gaza Factions Face Financial Strain, Fear Collapse

Ziyad al-Nakhalah, head of the Palestinian Islamic Jihad movement (seated right), alongside Naim Qassem, secretary-general of Lebanon’s Hezbollah, and senior Iranian military officials during the funeral of late Hamas leader Ismail Haniyeh in Tehran, August 2024 (Reuters)
Ziyad al-Nakhalah, head of the Palestinian Islamic Jihad movement (seated right), alongside Naim Qassem, secretary-general of Lebanon’s Hezbollah, and senior Iranian military officials during the funeral of late Hamas leader Ismail Haniyeh in Tehran, August 2024 (Reuters)

Field commanders and activists from Iranian-backed Palestinian factions in Gaza warn of a potential “complete collapse” as a worsening financial crisis comes amid signs of a possible US strike on Tehran.

Nearly two years of Israeli war in Gaza, along with strikes extending to Lebanon, Iran and parts of Syria, have strained money transfer routes and drained the factions’ assets and savings.

Islamic Jihad is the largest faction financially and logistically tied to Iran. To a lesser extent, links also reach the Popular Resistance Committees, the Mujahideen Brigades and other armed groups. Sources from those factions and activists in Gaza said the financial squeeze has hit all of them.

One source said stipends for individual members have dropped to between 200 and 400 shekels (the dollar equals 3.10 shekels) every 60 to 70 days, down from 800 to 2,200 shekels per month or every 40 days for some prominent members and activists before the war.

“Even at the leadership level, allocations have fallen to 1,000 shekels at most every two months or more, compared with more than 3,000 shekels nearly every month before the war,” the source said.

A source in a more minor faction said members of his group have received nothing for more than three months and now rely on intermittent donations from other parties, arriving roughly every two months or more, to distribute just 200 shekels per member.

Sanctions deepen the strain

Economic sanctions imposed by Washington in recent months on Iranian individuals and entities have compounded the difficulty of sustaining support, with leaders and field operatives locked in constant discussions about the crisis and its outlook.

Some factions receive direct backing from Iran and, to a lesser degree, rely on ties with Lebanon’s Hezbollah dating to their founding years, particularly during the second Intifada that erupted in late 2000.

Islamic Jihad sources said dwindling resources have hit charities affiliated with the movement. At the same time, allocations to other “humanitarian institutions” have been cut back to minimal activity, despite their direct affiliation with the Iranian regime.

More than one source within the movement described an unprecedented financial crisis, both inside and outside Gaza, especially in Lebanon, where Hezbollah has sustained heavy blows, and in Syria, where the movement has weakened significantly since the collapse of Bashar al-Assad’s rule.

Even so, sources said Islamic Jihad may be the last to face “collapse,” citing its popular base and ability to manage some affairs if security conditions stabilize at home and abroad.

The risk appears more immediate for other Iran-linked factions, which, before the war, relied on funding from Hamas. That support has stopped as Hamas grapples with mounting financial troubles of its own.

Hamas, however, has diversified revenue streams. Its years of governing Gaza enabled it to establish “investment projects” inside and outside the enclave, alongside tax revenues and other income collected by its government.

Iranian regret

Asharq Al-Awsat has learned that Iranian parties have expressed regret to some faction leaders over the current situation, citing the difficult circumstances facing Iran that have disrupted financial and military support.

Field sources said growing concern over a possible strike on Iran is intensifying fears of collapse among Tehran-linked factions, particularly given their fragile finances. Some field or armed members have been forced to seek basic jobs to support their families despite Israeli pursuit, they said.

Those who eased security precautions under financial pressure do not represent the majority, the sources added. Most leaders and members continue to carry out assigned tasks, banking on a diplomatic deal on Iran’s nuclear program to head off a US strike on the country.



Strike Kills One Iraqi Fighter near Syria Border

Mourners attend the funeral of members of Iraq's Hashed al-Shaabi, who were killed in an airstrike in the town of al‑Qaim near the Syrian border, amid heightened regional tensions due to the US-Israel conflict with Iran, in Baghdad, Iraq, March 12, 2026. REUTERS/Stringer
Mourners attend the funeral of members of Iraq's Hashed al-Shaabi, who were killed in an airstrike in the town of al‑Qaim near the Syrian border, amid heightened regional tensions due to the US-Israel conflict with Iran, in Baghdad, Iraq, March 12, 2026. REUTERS/Stringer
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Strike Kills One Iraqi Fighter near Syria Border

Mourners attend the funeral of members of Iraq's Hashed al-Shaabi, who were killed in an airstrike in the town of al‑Qaim near the Syrian border, amid heightened regional tensions due to the US-Israel conflict with Iran, in Baghdad, Iraq, March 12, 2026. REUTERS/Stringer
Mourners attend the funeral of members of Iraq's Hashed al-Shaabi, who were killed in an airstrike in the town of al‑Qaim near the Syrian border, amid heightened regional tensions due to the US-Israel conflict with Iran, in Baghdad, Iraq, March 12, 2026. REUTERS/Stringer

An attack killed one fighter from the former paramilitary coalition Hashed al-Shaabi on Saturday, the alliance said, blaming the US and Israel.

Iraq has been dragged into the war between the United States, Israel and Iran, with strikes targeting both US interests and pro-Iran groups in the country, reported AFP.

"This treacherous attack resulted in the martyrdom of one PMF fighter and the wounding of four others, as well as a member of the ministry of defense," said a short statement from the group, which is also known as the Popular Mobilization Forces (PMF), adding it was a "Zionist-American attack".

The PMF is a coalition of armed groups -- formed in 2014 to fight extremists-- that is now part of Iraq's regular army, but also contains pro-Iran factions who have a reputation for acting independently.

PMF positions have been repeatedly targeted since the outbreak of war, with the group consistently blaming the attacks on the US and Israel.

According to the group's statement, the latest attack targeted a position in western Anbar province of the 45th Brigade, which belongs to the US-blacklisted, pro-Iran Kataeb Hezbollah group.

Kataeb Hezbollah is part of the umbrella movement known as the Islamic Resistance in Iraq, which has been claiming daily attacks since the start of the war on US interests in Iraq and the region.

The Pentagon has said helicopters have carried out strikes against pro-Iran armed groups in Iraq during the war.

Washington has strongly denied claims it has targeted Iraqi security forces.


Houthis Threaten ‘Gradual Escalation’ after Fourth Attack on Israel

Houthi gunmen during a rally in Sanaa called by their leader (AFP) 
Houthi gunmen during a rally in Sanaa called by their leader (AFP) 
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Houthis Threaten ‘Gradual Escalation’ after Fourth Attack on Israel

Houthi gunmen during a rally in Sanaa called by their leader (AFP) 
Houthi gunmen during a rally in Sanaa called by their leader (AFP) 

Yemen’s Houthi group has threatened “gradual escalation” after claiming a fourth attack on Israel, about a week after entering the war alongside Iran as part of the Tehran-led “axis of resistance.”

The move comes as Yemen’s internationally recognized government steps up rhetoric, saying a decisive battle to retake the state from Houthi control is nearing. Israel, for its part, said it is consulting Washington on how to respond to the Houthi attacks, despite their limited impact compared with sustained fire from Iran and Hezbollah.

In a televised statement late Thursday, Houthi military spokesman Yahya Saree said the group launched “a salvo of ballistic missiles” at “vital Israeli targets in the occupied Jaffa area.” He claimed the operation was carried out in coordination with Iran and Hezbollah and had “successfully achieved its objectives.”

The Houthis said their intervention in what they described as a “major and exceptional battle” would be incremental, adding they would adjust their actions depending on “the enemy’s escalation or de-escalation.”

The latest strike marks the fourth since the group announced direct involvement in the regional confrontation, underscoring growing coordination among Iran-backed actors, including Hezbollah and armed Iraqi factions.

Limited effect

The Houthis had claimed a third attack a day earlier. The Israeli military said it intercepted a missile launched from Yemen “without casualties or damage,” adding early detection allowed it to neutralize the threat.

Analysts say such attacks are unlikely to do more than stretch Israel’s air defenses, already under pressure from multiple fronts, including Iran and Hezbollah.

In his first appearance since announcing the escalation, Houthi leader Abdul Malik al-Houthi said the group had shifted from political and media backing of Iran to “direct operational engagement.”

He framed the attacks as part of “joint operations of the axis of resistance,” describing the confrontation as “a duty that transcends geographical borders.” He also defended joining the war, saying neutrality “is not an option,” despite growing concern inside Yemen over the economic and security risks.

Al-Houthi urged supporters to maintain weekly pro-Iran rallies and step up mobilization, including sending school students to summer camps—long used by the group for recruitment.

Government signals offensive

Tareq Saleh, a member of Yemen’s Presidential Leadership Council, said “the battle to end the Houthi coup is approaching,” adding national forces would act “as one team.”

State media reported his remarks during a visit to forces on Yemen’s west coast, where he praised troops as “a safety valve for the republic,” signaling confidence in their ability to regain the initiative.

Saleh also pointed to the regional dimension, saying Iranian actions against Gulf states and Jordan show Tehran’s project is “destructive” and “has never truly been directed at Israel.”

Rejecting Houthi claims, he said the group “pretends to confront Israel” while using that narrative to justify violence against Yemenis, noting the conflict with the Houthis dates back to 2004, well before current regional tensions.

 

 


Fire Reported at Foreign Oil Companies' Storage Facilities in Iraq after Drone Strike

Members of Iraq's Hashed al-Shaabi forces stand guard during a pro-Iran rally in Tahrir Square in Baghdad on April 2, 2026.  (Photo by AHMAD AL-RUBAYE / AFP)
Members of Iraq's Hashed al-Shaabi forces stand guard during a pro-Iran rally in Tahrir Square in Baghdad on April 2, 2026. (Photo by AHMAD AL-RUBAYE / AFP)
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Fire Reported at Foreign Oil Companies' Storage Facilities in Iraq after Drone Strike

Members of Iraq's Hashed al-Shaabi forces stand guard during a pro-Iran rally in Tahrir Square in Baghdad on April 2, 2026.  (Photo by AHMAD AL-RUBAYE / AFP)
Members of Iraq's Hashed al-Shaabi forces stand guard during a pro-Iran rally in Tahrir Square in Baghdad on April 2, 2026. (Photo by AHMAD AL-RUBAYE / AFP)

A fire broke out ‌early ‌on Saturday at ‌storage ⁠facilities belonging to ⁠foreign ⁠oil ‌companies ‌west of Iraq's ‌Basra after ‌a ‌drone strike, security ⁠sources told Reuters.