Gaza Aid Policy Shift: Israel Reopens Private Sector Amid UN Diversion Crisis

In a significant policy shift, Israel has announced it will gradually permit the entry of goods into the Gaza Strip through the private sector, marking the first time in nearly a year this channel will be open. The decision, revealed Tuesday by the Defense Ministry’s Coordinator of Government Activities in the Territories (COGAT), aims to boost aid volume and reduce reliance on United Nations and international organizations.

The move comes as the UN admitted a staggering 88 percent of its aid trucks collected over recent months failed to reach their intended destinations in Gaza, largely due to looting by desperate, hungry civilians and, in some cases, armed actors. Data from the UN Office for Project Services (UNOPS) shows that between May 19 and August 5, 2,309 out of 2,604 UN-collected trucks were intercepted. In July alone, 94% of trucks were diverted.

COGAT stated that the new mechanism would approve a limited number of local merchants, subject to strict security screening. Approved goods include basic food products, baby food, fruits, vegetables, and hygiene supplies, with payments to be conducted solely via monitored bank transfers. Israeli authorities will inspect all goods at border crossings.

The decision has drawn criticism from hawkish Israeli groups and politicians, who warn that allowing private sector goods could re-establish a method previously exploited by Hamas for military buildup. Israel had halted private sector goods entry on October 8, 2024, citing Hamas exploitation.

Meanwhile, military operations continue in the enclave. The Israel Defense Forces (IDF) reported hitting dozens of terror targets and destroying Hamas tunnels across Gaza. An IDF officer was moderately wounded Tuesday by an explosive device in southern Gaza. Hamas authorities reported over 90 fatalities from Israeli strikes on Monday, and the Hamas-run health ministry claimed 180 deaths from starvation or malnutrition since the war began, including 93 children.

The humanitarian situation remains dire amidst international pressure on Israel to increase aid. The broader conflict, triggered by Hamas’s October 7, 2023 attack, continues with a stalemate in hostage negotiations and ongoing debate over the next phase of military operations in Gaza.

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