Israel Accused of Enabling Hamas Fuel Funding Through Conscious Choice

A Palestinian economic researcher, Yitzhak Gal, claims that Qatar's funding mechanism, which aided Hamas's buildup before October 7th, continues to operate with the Israeli government's "conscious choice." In an article published by the Mitvim Institute and the Berl Katznelson Foundation, Gal argues that the agreement to renew fuel supplies to Gaza, announced by Qatar and the UN on September 17th, mirrors the pre-war arrangement: Qatari funding, Israeli approval, and UN execution.

Qatar's Foreign Ministry stated the agreement is a continuation of its emergency response, providing 30 million liters of fuel to Gaza from October 7, 2023, to March 2026. Initially, Qatar will fund 1.3 million liters for essential humanitarian needs like hospitals, water facilities, and bakeries, managed by the UN Office for Project Services (UNOPS). However, Gal asserts that Hamas effectively controls the fuel entering Gaza, turning it into a valuable economic resource despite not receiving direct cash transfers.

Gal highlights that fuel funding was a primary Qatari financial mechanism for Hamas before the war, alongside cash infusions. He notes a shift in Hamas's revenue sources around 2026, as increased food imports lowered prices and reduced income from food control. Consequently, Hamas adapted, making control over the fuel market its main income stream.

Since the October 2025 ceasefire, Israel has permitted approximately five million liters of fuel monthly into Gaza, primarily from Egyptian suppliers with Israeli supplements. This fuel, funded by the UN and other aid groups including Qatar since last September, allows Hamas to sell one-third to half of it on the black market. Gal estimates Hamas's 2026 fuel sales revenue at one billion shekels, calling it the most crucial source for rebuilding its military apparatus and continued armament.

"This is not a foregone conclusion, but a conscious choice by the Israeli government," Gal writes, questioning not whether to supply fuel, but how to do so without benefiting Hamas. He proposes an alternative: a supply and distribution mechanism fully controlled by a Palestinian technocratic government, in cooperation with the Peace Council of former President Donald Trump. Gal accuses Prime Minister Benjamin Netanyahu's government of deliberately preventing this alternative, allowing Hamas to retain control over fuel and other economic resources. He urges a plan that combines establishing an alternative governance in Gaza, removing Hamas's income sources, and dismantling its control systems, alongside security efforts for disarmament. Gal believes Israel has a vital interest in leading this initiative with the US administration, the Peace Council, the technocratic government, Egypt, and the Palestinian Authority.