Gaza’s humanitarian crisis is worsening as more than two million residents face deadly shortages of food and essential supplies amid Israel’s ongoing restrictions on aid deliveries.
Since the beginning of March, Israel has severely limited the supply of food, pushing many families to the brink of starvation and triggering the rise of a black-market economy.
The siege has not only restricted the entry of goods but also led to unequal access to aid for those most in need. More than 500 people have been killed while attempting to reach food distribution centres set up near Israeli military positions in the southern and central parts of the Strip.
While some Palestinians can reach the US-based Gaza Humanitarian Foundation points, others are blocked by the ongoing violence or fear of being targeted by Israeli forces. The situation has allowed a small number of people to profit from reselling the aid at exorbitant prices in local markets.
The price of key staples has soared. Sugar now sells for up to 260 shekels ($77) per kilo, an increase of more than 8,500% compared to pre-war levels. According to local economists, this surge is driven by a lack of market regulation and profiteering by individuals who can access aid centres and sell goods at inflated prices.
Saeed Abu Ghali, a public sector worker in Gaza, earns around 800 shekels (roughly $237) every 45 days, saying his entire salary is spent within a week on basic goods such as flour, sugar, and oil, items now sold at inflated prices.
He told The New Arab's sister site Al-Araby Al-Jadeed: "I had to reduce the number of meals my children eat and give up on things like milk and medicine. I even sold household items just to buy food. We’re on the verge of a real humanitarian catastrophe. This salary can’t sustain a week’s worth of food."
Rise of black market traders
Hadi Hassan, a young man from the Nuseirat refugee camp, claimed he made over $12,000 by collecting goods from the Netzarim distribution centre and selling them at market. He claims to make 3,000 shekels ($890) in daily sales, focusing on high-demand items like oil, sugar, flour, and biscuits.
"There’s chaos, and anyone can take whatever they want, regardless of whether they need it," Hassan told Al-Araby Al-Jadeed. "You either profit from the chaos or stay hungry."
Humanitarian experts and economists have warned that the current aid situation is entrenched in inequality. Dr Nasim Abu Jame, a Gaza-based economist, said: "What we’re seeing is the creation of a new class of ‘aid merchants’, people who exploit access to distribution points to monopolise food.
"Aid is meant to be a lifeline, not a commodity. But right now, it’s enriching a few while the majority of families can’t even secure basic meals."
Abu Jame called for urgent reforms to how aid is delivered, adding: "There needs to be a transparent and accountable system that ensures aid reaches those most in need. Without international oversight, the current approach will only deepen class divisions and prolong suffering."
Gaza’s economy has collapsed under the combined impact of the ongoing war, the siege, and the near-total shutdown of economic activity. According to economic analyst Imad Labad, approximately 95% of Gaza’s population is now dependent on humanitarian aid.
"There are no jobs, no state salaries, and no means for people to support themselves," Labad said. "The blockade on aid has drained whatever savings people had. Those with access to distribution centres are turning aid into profit, while everyone else goes hungry."
Labad said that poverty in Gaza has exceeded 90%, with unemployment reaching a record 83%.
"Thousands of families are living on a single meal a day. The blockade has transformed aid from a survival tool into a means for exploitation," he said.