Hamas is facing a severe financial crisis, struggling to pay its fighters and distribute cash within Gaza due to Israel's restrictions on cash transfers that began with the conflict.

Before the war, Hamas relied on substantial funding from abroad, including $15 million monthly from Qatar, but these funds have been cut off.

As a result of the financial strain, salaries for many Hamas government workers have ceased, with senior operatives receiving only half of their normal pay and rank-and-file members earning between $200 and $300 monthly.

The humanitarian situation in Gaza has deteriorated significantly, with no aid entering the region for over six weeks, leading to severe shortages of food, water, and medical supplies.

Humanitarian organizations warn that the blockade could lead to extreme hunger for Gaza's two million residents, with the UN declaring it the worst humanitarian crisis in the region since the conflict began.

Israeli Defense Minister Israel Katz announced plans to block humanitarian aid to Gaza as a pressure tactic against Hamas, although he stated that aid would eventually resume through civilian companies.

Amidst the ongoing conflict, protests against Hamas have emerged in Gaza, with residents openly calling for an end to the group's rule for the first time in 18 years.

Moumen Al-Natour, a Palestinian lawyer, highlighted that Hamas relies heavily on humanitarian aid, which is often sold on the black market for cash, exacerbating its financial crisis.

Despite the financial pressures, Hamas has historically navigated crises by exploiting black market activities and relying on taxes from merchants, suggesting it may endure this current situation.

The ongoing financial difficulties within Hamas indicate increasing organizational dysfunction, as reported by the Wall Street Journal.

In response to the financial crisis, Hamas has shifted to informal cash networks for payments, relying on person-to-person transactions since the resumption of hostilities.

The Israeli government has severely restricted financial flows to Hamas since the conflict began on October 7, 2023, further complicating the group's ability to sustain itself.