Smuggling networks funnel banned goods into Gaza, generating millions for soldiers and officials
Investigative reporting reveals a booming illegal trade that moves prohibited items into Gaza, enriching Israeli troops, middlemen and Hamas authorities.
Based on Israeli legal documents and anonymous testimonies, the report details how a network of traders, truck drivers and coordinators circumvents Israel's strict import bans to supply Gaza with contraband ranging from cigarettes to iPhones and anesthetics. Bribes to Israeli soldiers, reserve units and border officials enable trucks to pass through the Kerem Shalom crossing or ride in military vehicles, while Hamas-run authorities levy a cut that can reach up to 80 percent of the sale price.
Prices for basic goods have inflated sharply; a battery now costs over $2,300 compared with $140 before the war. The shadowy broker dubbed Abu Bassel is described as the primary gatekeeper, using connections within the police and an aid organization as cover. Recent indictments have named several Israeli businessmen and reservists, accusing them of paying roughly $120,000 to move thousands of cigarette packs and other items. The illicit trade now underpins a large portion of Gaza's economy, funding public services and salaries while leaving residents to bear inflated costs.
Why it matters
The story shows how war-time restrictions fuel a lucrative black market that enriches officials and worsens civilian hardship.
How this story developed
- Aug 12 Israeli airstrike wounds alleged Hamas commander in northern Gaza
- Aug 16 Hamas sources said a delegation will sit with Kushner, alongside Egyptian and Qatari officials, before his scheduled talks with Israeli Prime Minister Benjamin Netanyahu. Hamas chief Khalil al-Hayya traveled to El-Alamein, marking his first trip since assuming leadership. The United States has asked Hamas for clarifications on weapon storage and full relinquishment of Gaza governance. Israel continues airstrikes, reporting several injuries and a child casualty, while the Gaza health ministry cites over 1,262 Palestinian deaths since the ceasefire began.
- Aug 17 Kushner scheduled to meet Israeli Prime Minister Benjamin Netanyahu to push the 15‑point Gaza plan after talks with Hamas leaders.
- Aug 17 After meetings with Board of Peace officials Nickolay Mladenov and Tony Blair, Kushner met Israeli Prime Minister Benjamin Netanyahu and obtained agreement to form two task forces—one on Gaza disarmament and another on sanitation and public health. The Israeli side will only proceed once Hamas begins demilitarization, while the Board of Peace stresses a lengthy timeline for full implementation. Hamas leader Khalil al Hayya was also engaged in Cairo, with Kushner urging the group to start the disarmament process.
- Aug 17 Kushner met with Netanyahu in Jerusalem following his discussion with Hamas leader Khalil al‑Hayya.
- Aug 18 Major General Jasper Jeffers was appointed to oversee the dismantling of Hamas weapons.
- Aug 18 Two joint working groups were established – a security panel to seize Hamas weapons for an American‑led stabilization force and a humanitarian panel to restore water, sanitation and health services.
- Aug 19 An Israeli drone strike killed Gaza City police chief Jamal Abu Kamil.
- Aug 19 Greens leader Larissa Waters demanded sanctions on Israel, saying statements have done nothing and urging action beyond words.
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