Key facts
- Smuggling of banned goods into Gaza has surged since the Israel-Hamas war began in October 2023.
- Items like cigarettes, iPhones, solar panels, fuel, and medicine are being smuggled, with cigarettes being the most profitable.
- Millions of dollars are reportedly changing hands, with accusations of Israeli soldiers and other middlemen pocketing profits.
- Gaza's Hamas-led government also collects a portion of profits from smuggled goods.
- Smuggled goods are significantly more expensive for Gaza's residents, with prices for items like vehicle batteries and solar panels skyrocketing.
An Associated Press investigation reveals that a booming illicit trade in banned goods has emerged in the Gaza Strip since the Israel-Hamas war began in October 2023. Palestinians face drastically inflated prices for essential items like groceries, batteries, medicine, and fuel, as well as luxury goods such as iPhones and solar panels. Cigarettes and tobacco, banned from entry, are reportedly the most profitable items for smugglers.
The investigation, based on court documents and interviews with traders, truckers, and officials, indicates that millions of dollars are being exchanged, with accusations that Israeli soldiers and other middlemen are profiting from the tight restrictions imposed by Israel. These restrictions, which classify many items as 'dual use' that could be repurposed by Hamas, have created a demand that smuggling networks are exploiting.
Traders and officials describe a system where payoffs are made to individuals on both sides of the border to facilitate the movement of contraband. The Israeli military stated it takes smuggling seriously and investigates any suspected involvement of its personnel, though it did not answer detailed questions. Gaza's Hamas-led government also reportedly collects a portion of the profits from smuggled goods, which merchants refer to as 'taxing'.
Smuggling has become a vital part of Gaza's economy, with some senior traders estimating it accounts for over half their operations and generates a significant portion of their profits. The increased costs are passed on to consumers, making basic necessities and goods like vehicle batteries and solar panels prohibitively expensive. The flow of goods into Gaza has increased since a fragile ceasefire, but remains below pre-war levels, further driving demand for smuggled items.