Hamas faces significant financial difficulties, negotiations with Israel still possible
To halt the fighting in the Gaza Strip, Hamas must release all hostages, Adam Boehler, U.S. Special Presidential Envoy for Hostage Affairs, said.
“If the hostages are released, the fighting will cease immediately,” Boehler noted, adding that the release of hostages is the first step toward peace.
He believes that negotiations between Israel and Hamas are still possible.
Meanwhile, The Wall Street Journal, citing Palestinian, Israeli, and Western sources, said that Hamas has encountered significant financial difficulties following the resumption of military operations in the Gaza Strip in March, forcing it to cut payments to field commanders, regular fighters, and officials involved in the enclave’s administration.
As noted, prior to the terror attacks on Oct. 7, 2023, Hamas had managed to accumulate about $500 million, most of which was stored in Turkey. These funds were primarily raised from donors in the Middle East, West Africa, South Asia, and the United Kingdom. Since the outbreak of military operations in 2023, the flow of funds has significantly decreased, and the withdrawal of money from Gaza has become more difficult. Sources indicate that Hamas has also earned money from the circulation of commercial and humanitarian goods in the enclave by collecting fees from traders and transporters at checkpoints, and seizing some goods for resale. Representatives of the movement have also independently purchased certain goods from abroad and sold them in Gaza, sources say.
The resumption of military operations in March 2025, Israel’s decision to halt all humanitarian aid to Gaza, and the removal of a large number of senior Hamas officials involved in financing schemes have led to a significant reduction in cash flow.
Hamas has stopped the salaries of some officials in Gaza and has cut the salaries of its senior commanders and regular fighters by half. According to sources, these financial difficulties negatively impact the morale of the movement’s fighters and their ability to recruit new participants for military operations.
