Gaza Merchants Halt Goods Coordination Amid Hamas Extortion

Israel's Coordinator of Government Activities in the Territories (COGAT), Maj. Gen. Yoram Yair Halevi, informed international officials on Wednesday that private sector merchants have suspended the coordination of goods entering the Gaza Strip indefinitely. This decision stems from Hamas's imposed taxation mechanism and escalating threats against traders who refuse to comply with the organization's demands. The notification was sent to senior Gaza representative Nikolai Mladenov, International Stabilization Force Commander Maj. Gen. Jasper Jeffers, and UN Humanitarian Coordinator Ramiz Alakbarov.

According to reports, Hamas security forces arrested the son of one merchant on Tuesday and transferred him to Abbas Prison after the merchant refused to pay the organization's taxes. This incident, coupled with fears for their safety, prompted the merchants to cease coordination starting Wednesday. Merchants report that Hamas is demanding approximately 10,000 shekels per truckload of goods entering Gaza and requires them to sell about 30% of their merchandise in cash, allegedly to seize the funds. These demands violate the merchants' prior commitments to conduct transactions solely via bank transfers.

The taxation mechanism has reportedly been expanded to include sub-merchants and is intended to be applied to drinking water as well. Halevi emphasized in his letter that the private sector accounts for roughly 50% of all trucks entering Gaza weekly. The suspension of their operations due to Hamas's threats and extortion directly impacts Israel's ability to meet the agreed-upon target of 600 trucks per day under the ceasefire agreement.

Halevi placed responsibility for the consequences of the private sector's halt on Hamas, urging international actors to act immediately to prevent the organization's interference with the entry of aid and goods into Gaza. He warned that Hamas intends to exploit this situation to spread false claims of shortages and Israeli non-compliance, thereby deflecting blame and concealing its role in disrupting the flow of goods.

COGAT will continue to facilitate the coordination of humanitarian aid and supplies into Gaza through the UN, international organizations, and donor countries, including winter supplies. COGAT estimates, supported by UN and international professional assessments, that approximately 250 trucks per day through these channels are sufficient to meet the Strip's humanitarian needs.