CAIRO (AP) 鈥� The restricted by Israel into has boomed, with items from cigarettes and iPhones to fuel and solar panels making their way to desperate residents of the tiny coastal territory devastated by .
An 鈥� based on an analysis of Israeli court documents and on interviews with traders, merchants, truckers, officials, and Palestinian residents who face skyrocketing prices for everyday essentials 鈥� built a picture of the smuggling market and found that soldiers and other middlemen are accused of pocketing millions of dollars in the illicit trade.
Most of AP’s sources spoke on condition of anonymity because of their roles in the illegal smuggling business and concerns about their safety in Gaza.
Here are some takeaways from AP’s report.
Sources say Gaza’s Hamas-led government is taking in money on smuggled items
Merchants and one Palestinian official said Gaza鈥檚 Hamas-run government takes in some profit from goods coming into the enclave. Merchants refer to it as 鈥渢axing鈥� 鈥� on both smuggled goods and those brought in legally.
Mohammad Barbakh, of the Palestinian Economy Ministry in Gaza, said the government receives up to 20% of the price of smuggled goods if the merchant reports them to authorities, and that increases to 80% if the items go unreported and authorities discover them. But he said authorities don鈥檛 call their cut 鈥渢axes鈥� and that they haven鈥檛 taxed goods entering legally since the war鈥檚 start.
Barbakh and other sources said the government doesn鈥檛 engage in commercial smuggling directly or oversee the trade.
Two senior officials in the Hamas administration said 鈥� on condition of anonymity because they weren鈥檛 authorized to speak to journalists 鈥� the money collected helps fund social services and pay salaries for Gaza鈥檚 civil service and police force. They estimated up to $100 million had been collected on smuggled goods .
Barbakh said the government doesn鈥檛 have exact figures on smuggled goods 鈥渂ecause these operations are conducted clandestinely.鈥�
In response to AP questions, Ismail al-Thawabta of the government鈥檚 media office said no collected funds go to Hamas鈥� military wing.
Israeli indictments show the scope of smuggling, including military links
Since late 2025, Israeli authorities have broken up several alleged smuggling rings, indicting more than a dozen people, including reserve soldiers operating in Gaza.
The traders, merchants and truckers who spoke to AP say that鈥檚 a fraction of those involved.
In one of the biggest cases, prosecutors accused several people of running a smuggling ring out of the central town of Kiryat Gat. Indictments show they鈥檙e accused of bribing reserve soldiers in Gaza, including Bezalel Zini, brother of the head of the Shin Bet, Israel鈥檚 powerful domestic security agency.
Court documents assert that millions of dollars are changing hands in smuggling rings. Two Israeli brothers, Eliran and Avi Algarabli, earned some $2.2 million from smuggling runs from October to December, when they were arrested, documents say. Other defendants in cases are accused of making $1 million to $3 million.
Smuggling fuels Gaza’s economy
Smuggling is a major source of income as most of the population 鈥渓ost their source of living,鈥� a tribal leader said, on condition of anonymity over safety concerns.
Several top merchants estimated that smuggling comprises over half their total operations and can bring in more than 70% of profits.
Those costs get passed on to residents, for groceries and other needs. Residents say a vehicle battery can go for more than $2,300, compared with $140 prewar.
鈥淏aby formula and pet food were also smuggled,鈥� said Mohamed Abu Taha, a Gaza resident and father of one.
Cigarettes rake in the biggest profits
Cigarettes and tobacco products have been banned from entry since the war’s start.
Perhaps no item is as in demand. Prices per pack, residents say, hit $140 recently, and over $1,000 during Israel鈥檚 total blockade.
鈥淵ou could find two or three men sharing one cigarette,鈥� Abu Taha said.
For smugglers, these products are easy to hide and the potential profit huge. Shipments of thousands of packs have been hidden in Israeli military vehicles, commercial trucks, aid shipments and even hollowed-out pineapples, according to traders, court documents and Israeli official statements.
COGAT, the military department in charge of coordinating entry of goods into Gaza, didn’t reply when asked why cigarettes are banned.
Israel bans many items on the grounds of 鈥渄ual use鈥�
Beyond cigarettes, smugglers also bring in essential goods, like concrete, vehicle parts, anesthetics and other drugs.
Israel restricts quantities of some goods and bans others outright. The military classifies some 150 broad categories of items as 鈥渄ual use,鈥� asserting they could be repurposed for military functions 鈥� including asphalt, steel pipes, wooden planks and X-ray machines, according to documents provided by COGAT.
Besides the U.N. and other humanitarian groups , Israel has given 12 senior traders in Gaza permits to import commercial goods. Shipment contents must be approved by Israeli authorities, a process aid workers and merchants say can be long and opaque, sometimes ending with a 鈥渄ual use鈥� rejection.
COGAT said it has let in some 鈥渄ual use鈥� items including generators and X-ray machines, under strict monitoring.
The Israeli military said via email that it takes smuggling 鈥渧ery seriously.鈥� It said cases of suspected involvement by Israeli military personnel are 鈥渆xamined and handled in accordance with the law.鈥�
But military officials didn鈥檛 answer a list of detailed questions from AP on the roles of soldiers or Gaza鈥檚 government in smuggling.
Residents pay the price, and some question Israel’s ban list
Payments along the way go to many players, including drivers and warehouse workers in Israel and Gaza, said one trader.
鈥淵ou are paying at every step, plus the price of the goods themselves,鈥� he said.
Gaza residents have faced another summer with limited resources. For example, fans that once cost $100 can run $500.
鈥淲hen we ask the merchants why they don鈥檛 import fans, they say the Israeli army refuses to allow them in because they鈥檙e dual use,鈥� resident Mohamed Abu Olwan said. 鈥淲hat would they make with them? Rockets?”
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Associated Press journalists Wafaa Shurafa in Deir al-Balah, Gaza; Natalie Melzer in Tel Aviv, Israel; and Lee Keath in Cairo contributed.
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