The UN agency for Palestinian refugees has warned it has reached a critical juncture as it struggles to cope with Israel’s offensive in Gaza, AFP reports.

“It is with profound regret that I must now inform you that UNRWA has reached a breaking point,” chief Philippe Lazzarini said, as donors freeze funding, Israel exerts pressure to dismantle the agency and humanitarian needs soar.

“The agency’s ability to fulfill the mandate given through General Assembly resolution 302 is now seriously threatened,” he said in a letter to the assembly.

Several countries — including the United States, Britain, Germany and Japan — have suspended funding to UNRWA in response to Israeli allegations that some of its staff participated in the October 7 attack on Israel.

In an interview published over the weekend Lazzarini said $438 million has been frozen — the equivalent of more than half of expected funding for 2024. He said Israel was waging a concerted effort to destroy UNRWA.

The UN fired the employees accused by Israel and has begun an internal probe of UNRWA. UN Secretary-General Antonio Guterres has also tasked an independent panel with assessing whether UNRWA acts in a neutral fashion in the Israeli-Palestinian conflict.