UN Experts Call for an End to Israel’s Financial Control Over Palestinian Territories

Introduction

In a recent statement, United Nations experts have highlighted the severe economic consequences of Israel’s ongoing military actions in Gaza and its broader financial control over Palestinian territories. They emphasize that these actions not only result in loss of life but also devastate the local economy and the livelihoods of the Palestinian people. This report sheds light on the grim economic realities faced by Palestinians and the urgent need for international intervention.

The Humanitarian Crisis in Gaza

The situation in Gaza has reached critical levels following recent conflicts, with dramatic increases in the prices of essential goods. According to UN reports, cooking oil prices surged by 1,200 percent, while flour prices skyrocketed by 5,000 percent by mid-2025. Humanitarian workers in the region are reportedly experiencing a significant reduction in their salaries, losing nearly 40 percent just to access their wages. This financial strain is exacerbated by ongoing electricity and telecommunications outages, which hinder digital payments and other financial transactions.

The UN experts’ findings indicate that the humanitarian crisis in Gaza is not merely a result of the conflict but is also deeply intertwined with the long-standing blockade and siege that have crippled the territory’s economy. With most commercial, agricultural, and industrial assets damaged or destroyed, unemployment has soared to over 80 percent, and the gross domestic product (GDP) has dramatically contracted.

Corporate Involvement and Accountability

Francesca Albanese, the UN special rapporteur on the situation of human rights in the occupied Palestinian territory, has compiled a report identifying 48 corporate entities, including major US tech companies like Microsoft, Amazon, and Alphabet Inc., which is Google’s parent company. This investigation has resulted in the creation of a database that includes over 1,000 corporate actors involved in activities that may contribute to the displacement of Palestinians and the ongoing conflict.

The report underscores the complicity of these corporations in Israel’s actions, which are deemed to be in violation of international law. The experts argue that Israel is not only violating its human rights obligations as an occupying power but is also obstructing the Palestinian people’s collective rights to economic self-determination and control over their natural resources.

Israel’s Financial Policies and Their Impact

The economic situation in Gaza is further exacerbated by the financial policies of the Israeli government. Bezalel Smotrich, Israel’s far-right Finance Minister, has proposed the cancellation of annual waivers that allow Israeli banks to process transactions with Palestinian banks. Experts warn that such a move would effectively cut Palestinians off from the global financial system, intensifying the already dire economic conditions.

The experts have pointed out that Gaza is currently facing a liquidity crisis, with most banks and ATMs destroyed and the inflow of new currency blocked by Israeli authorities. This has resulted in wages that are insufficient to keep pace with the rampant inflation caused by the ongoing siege. The UN-backed Integrated Food Security Phase Classification (IPC) report has officially declared famine in parts of Gaza, labeling poverty as endemic in the region.

The Situation in the West Bank

While Gaza is often the focal point of humanitarian discussions, the economic situation in the occupied West Bank is also deteriorating. The UN experts have noted that Israel has arbitrarily diverted or withheld tax revenues owed to the Palestinian Authority, violating the Oslo Accords. This financial manipulation has further strained the Palestinian economy, limiting the ability of the Palestinian Authority to function effectively.

Additionally, the suspension of work permits for 100,000 Palestinian workers has drastically reduced cash inflows, which previously accounted for a quarter of the gross national income. This loss of income has compounded the financial difficulties faced by many families in the West Bank.

Conclusion

The UN experts’ report paints a bleak picture of the economic landscape in both Gaza and the West Bank, underscoring the urgent need for international attention and intervention. The combination of military actions, financial control, and corporate complicity has created a situation that threatens the very foundations of Palestinian society. As the international community grapples with the complexities of the Israel-Palestine conflict, addressing these economic challenges is critical for any meaningful resolution.

Key Facts

– UN experts warn of catastrophic economic damage due to Israel’s attacks on Gaza and financial control over Palestinian territories.
– Prices for essential goods in Gaza have skyrocketed, with cooking oil increasing by 1,200% and flour by 5,000%.
– Unemployment in Gaza has exceeded 80%, and GDP has significantly shrunk.
– Francesca Albanese’s report identifies 48 corporate entities, including major US tech companies, involved in activities contributing to the conflict.
– Israel’s Finance Minister Bezalel Smotrich has proposed cutting waivers that allow transactions with Palestinian banks, risking further economic isolation for Palestinians.
– A liquidity crisis in Gaza has led to widespread poverty and a declared famine in parts of the territory.
– The West Bank is also experiencing economic strain due to the diversion of tax revenues and the suspension of work permits for Palestinian workers.

Source: www.aljazeera.com