JERUSALEM: Israel on Thursday said commercial goods usually delivered into Gaza by private merchants had not entered the beleaguered territory for days because of Hamas threats and a taxation scheme, an accusation the group rejected.

Despite a fragile ceasefire observed since Oct 2025, the Gaza Strip remains engulfed in a severe humanitarian crisis and the alleged dispute between Hamas and merchants threatens to further cut off supplies to the territory.

Gaza, a tiny territory surrounded by Israel, Egypt and the Mediterranean Sea, has been under blockade even before Hamas’s Oct 7, 2023 raid.

But COGAT, the Israeli defence ministry agency responsible for civilian affairs in the Palestinian territories, said it told senior international officials that merchants had suspended coordination for the entry of goods into Gaza “until further notice” because of what it described as Hamas coercion.

Hamas denies imposing levy, calls payments voluntary initiative

In a letter to international representatives involved in implementing the ceasefire, COGAT said merchants reported that Hamas demanded about 10,000 shekels ($3,200) for every truck into Gaza and that traders sell around 30pc of goods in cash instead of bank transfers.

The agency also cited reports that Hamas security personnel had arrested the son of a merchant who refused to comply with the demands, prompting traders to suspend operations out of fear for their safety.

Hamas rejected the allegations in a letter addressed to mediators including Egypt, Qatar and Turkiye, saying it “categorically” denied imposing taxes or government fees on commercial trucks.

It said it had not collected taxes or fees on commercial activity in the past three years of war because of the humanitarian and economic conditions in Gaza.

Hamas said the 10,000-shekel figure referred to a “voluntary community initiative” by Gaza’s businesspeople to put money into a “national fund” for relief projects, while the transaction requirement was to inject “cash liquidity” into the territory.

COGAT said the private sector accounted for roughly half of all trucks entering Gaza each week and warned the suspension could undermine the ceasefire agreement.

COGAT said Israel had not initiated the suspension of coordination, but the merchants.

Nickolay Mladenov, the Gaza representative of the US-backed Board of Peace tasked with implementing the ceasefire, said he had received COGAT’s letter and condemned reported “threats and coercion” against merchants.

“Such practices are unacceptable and must end immediately,” Mladenov wrote on X, adding that interference in supply chains increased the suffering of Gaza’s civilians.

The International Organisation for Migration last week called for Israel to ease the “constraints” on the entry of critical supplies into Gaza.

Published in Dawn, October 16th, 2026