By Yusri Mohamed, Nadine Awadalla and Tala Ramadan

ISMAILIA, Egypt (Reuters) -Egypt said on Monday that Israel was not cooperating with delivery of aid into Gaza and evacuations of foreign passport holders via the only entry it does not wholly control, leaving hundreds of tonnes of supplies stuck.

Cairo says the Rafah crossing, a potentially vital opening for desperately-needed supplies into the Israeli-besieged Palestinian enclave, is not officially closed but was made inoperable due to Israeli air strikes on the Gaza side.

As Israel’s bombardment and siege of Gaza has intensified, the territory’s 2.3 million residents have been left without power, pushing health and water services to the brink of collapse, with fuel for hospital generators running low.

“There is an urgent need to alleviate the suffering of Palestinian civilians in Gaza,” Egypt’s Foreign Minister Sameh Shoukry told reporters, adding that talks with Israel had not been fruitful.

“Until now the Israeli government has not taken a position on opening the Rafah crossing from the Gaza side to allow the entrance of assistance and exit of citizens of third countries.”

U.S. officials were hoping that Rafah would operate for a few hours late on Monday, White House spokesman John Kirby said, adding that earlier hopes for opening the crossing had been dashed.

Hamas-affiliated radio station Aqsa said Israeli shelling hit the Rafah crossing area again on Monday. The Egyptian side of the border appeared deserted on Monday afternoon, with aid supplies being stockpiled in the nearby city of Al Arish.

“It is critical that life-saving assistance is allowed to move through the Rafah crossing without delay,” U.N. humanitarian agency OCHA said in a statement, announcing that its chief Martin Griffiths would travel to Cairo on Tuesday.

Gazans have been under siege since Israel launched its most intense bombardment and blockade ever following a devastating cross-border assault by Islamist Hamas militants on Oct. 7.

Hundreds of thousands of Palestinians have been displaced within Gaza, with some taking cars and suitcases south towards the Rafah crossing but others heading back north after failing to find refuge.

“On our way to the crossing they shelled Rafah Street and we started screaming,” said one resident near the crossing, Hadeel Abu Dahoud. “Nowhere is safe in Gaza.”

DISPLACEMENT FEARS

Like others, Egypt has spoken out against any mass exodus of Gaza residents, reflecting deep Arab fears that the latest war could spark a new wave of permanent displacement for Palestinians from lands where they have sought to build a state.

Early on Monday, two Egyptian security sources had told Reuters a temporary ceasefire in southern Gaza to last several hours had been agreed to facilitate aid and evacuations at Rafah.

However, Egyptian state TV later quoted a unnamed, high-level source as saying that no truce had been agreed. Hamas official Izzat El-Reshiq told Reuters that reports of a deal to open the crossing were untrue, and Israel also denied them.

On the ground at Rafah, one source said the Egyptian side of the crossing was ready. Shoukry said Egypt aimed to restore regular access through Rafah, including for Palestinians seeking medical treatment or normal travel.

Hundreds of tonnes of aid from NGOs and several countries were waiting in Al Arish for conditions to allow entry to Gaza.

“We are waiting for the green light for the aid to enter and dozens of volunteers are ready at any time,” a Red Crescent official in northern Sinai said.

Separately, Reuters video showed U.N.-flagged fuel trucks appearing to leave Gaza for Egypt through the Israeli-controlled Kerem Shalom crossing.

Movement of goods and people through Rafah has been tightly controlled under a blockade of Gaza imposed by Israel and Egypt since Hamas took control of the enclave in 2007, and only registered travellers can cross.

(Reporting by Ahmed Mohamed Hassan in Cairo, Dan Williams in Jerusalem, Yusri Mohamed in Ismailia, Nidal Al Mughrabi in Gaza, Nadine Awadalla and Tala Ramadan in Dubai; Additional reporting by Aidan Lewis in Cairo; writing by Nafisa Eltahir; Editing by Jacqueline Wong, Toby Chopra, Andrew Cawthorne and Christina Fincher)

(Reuters) – Snap shares jumped 11% on Monday after a media report said the social media company is expected to have more than 475 million daily active users (DAUs) in 2024, above Wall Street expectations.

The user number reported by the Verge on Friday, citing an internal memo from CEO Evan Speigel to employees, exceeded Visible Alpha estimate of 447 million.

The higher-than-expected DAUs come as a relief for the Snapchat parent that has been struggling with tough competition and a weak advertising market.

Snap also expects advertising revenue to grow more than 20% in 2024 as part of its “stretch goals”, the report said, putting it above Wall Street estimates of 14% growth.

The company declined to comment on the report.

Bernstein analyst Mark Schilsky told Reuters that expectations from the stock are “incredibly low”, but he added, “even I have to admit that the stock would likely be materially higher if they hit this goal.”

Snap was the first ad-reliant social media firm to flag a demand downturn last year as brands cut budgets amid red-hot inflation and high interest rates.

Macroeconomic woes coupled with rising competition from social media platforms like Tiktok, saw Snap lose 80% of its valuation last year.

Snap has managed to almost achieve only one of the nine targets – growing the amount of time its daily users spend watching content by at least 10%, the report said.

(Reporting by Chavi Mehta in Bengaluru; Editing by Tasim Zahid)

By Nidal al-Mughrabi

GAZA (Reuters) – As Israeli air strikes pounded the Gaza Strip ahead of an expected ground offensive, the enclave’s residents were getting more desperate by the hour as water runs out, garbage piles up, explosions flatten homes and hospitals struggle to cope.

Desperate to get some drinking water, some people began digging wells in areas adjacent to the sea or were relying on salty tap water from Gaza’s only aquifer, which is contaminated with sewage and seawater.

Two residents in Khan Younis, in the southern Gaza Strip, volunteered to fill plastic containers with water to distribute among displaced families.

Some residents prayed for an end to the war between Israel and the Palestinian militant group Hamas, which has raised fears of a wider Middle East conflict.

They said overnight air strikes were the heaviest in nine days of conflict. Many houses were flattened. Gaza authorities said at least 2,750 people, mostly civilians and among them more than 700 children, had been killed and nearly 10,000 wounded. A further 1,000 people were missing, believed to be under rubble.

Israel has imposed a full blockade as it prepares a ground assault in Gaza. Israeli troops and tanks are massed on the border.

It has vowed to annihilate Hamas, which rules the enclave, in retaliation for a rampage by its fighters in Israeli towns nine days ago in which its militants killed 1,300 civilians including children and seized hostages in the worst attack on civilians in the country’s history. Israel’s military said at least 291 soldiers have been killed.

Medical and emergency services, and some graphic mobile phone footage, said atrocities were committed in the overrun towns and kibbutzes.

Hamas has continued to fire rockets at Israel since its cross-border assault. On Monday, rocket-warning sirens sounded in several towns in southern Israel, the Israeli military said.

Diplomatic efforts are underway to try to get aid into the enclave, via Egypt.

“Gaza is running out of water and electricity. In fact, Gaza is being strangled and it seems that the world right now has lost its humanity,” said Philippe Lazzarini, commissioner general of the U.N. Palestinian refugee agency UNRWA.

Hamas said on Monday that Israel had not resumed water supplies to Gaza despite pledging to do so. An Israeli official said some water was being provided to an area in the south of the enclave.

Amid international calls for a ceasefire to allow aid in, Israeli Energy Minister Israel Katz said there would be no halt to the siege without freedom for Israeli hostages. The Israeli military said on Monday 199 people were confirmed held hostage in Gaza.

FEARS OF HEALTH CRISIS

Gaza is one of the most crowded places on earth, and for now there is no way out. Egypt, which also has a border with the enclave, has so far resisted calls to open it to fleeing residents.

“Because of the large number of people inside the camp, there’s no water. So I thought I would volunteer, come with a rickshaw and carry the water from the far away areas, the dangerous areas,” said Mohammad Saqr.

“Now, we’re filling in salt water, I’m ready to drink from the salt water – what else can we do?” Saqr said.

Even before the latest conflict erupted and Israel cut electricity and fresh water supplies to Gaza, 90 percent of the water was undrinkable, according to the Palestinian Water Authority.

The territory’s only aquifer is contaminated by sewage, chemicals and seawater and neighbourhood desalination facilities and their public taps are a lifesaver for some of Gaza’s 2.3 million residents.

Even the 10% of the aquifer’s water deemed safe to drink is often mixed with poor-quality water during distribution, making it good only for washing.

Many families living in Gaza have opted to drill private wells drawing from water deep underground, and a small number who can afford it tend to buy mineral water. Others buy cheaper filtered treated water from water-trucks that tour the streets.

Garbage is also piling up on the streets and inside shelters for the displaced, raising fears of a health crisis.

“If the garbage continues to pile up it will cause diseases and pandemics,” said Mohammad Hadhoud, a cleaning worker from Khan Younis.

Doctors have been scrambling to help a rising number of patients, including children injured in the air strikes, in overcrowded hospitals that are running short on medicines and fuel due to the blockade. Only the most acute cases are getting surgery because there are not enough resources, doctors say.

(Writing by Michael Georgy; Editing by Janet Lawrence)

(Reuters) – As Israel’s bombardment and siege of Gaza has intensified, the territory’s 2.3 million residents have been left without power, pushing health and water services to the brink of collapse, with fuel for hospital generators running low.

U.S. officials warned that the war between Israel and militant group Hamas could escalate, as American warships headed to the area amid growing clashes on Israel’s northern border with Lebanon.

CONFLICT

* Hamas’ armed wing says it fired a ‘barrage of missiles’ at Jerusalem, Tel Aviv

* White House officials are hoping the crossing into Egypt can be opened for a few hours to allow people to leave Gaza before an expected Israeli ground offensive, the White House said. “Right now it’s still closed,” spokesman John Kirby said.

   * Russian President Vladimir Putin discussed the conflict with the leaders of Iran, Egypt, Syria and the Palestinian Authority and said any form of violence against civilians was unacceptable, the Kremlin said. “There was also serious concern about the likelihood of the conflict escalating into a regional war”, it said.

* Supporting the Palestinians is Iran’s foreign policy priority but Palestinian groups make their own independent decisions, President Ebrahim Raisi told his Russian counterpart, Iranian state media reported.

* The expected Israeli ground offensive and air strikes have raised fears of unprecedented suffering in the narrow, impoverished Gaza Strip. The fate of 4-year-old Fulla Al-Laham is just one of many heartbreaking examples: her grandmother said an air strike hit the family home, killing Fulla’s parents, siblings and members of her extended family.

* Military forensic teams in Israel examined the bodies of victims of the Hamas attack, and found multiple signs of torture, rape and other atrocities, officers said.

HUMAN IMPACT

* “Gaza is running out of water and electricity,” the head of the U.N. Palestinian refugee agency said.

* Half of Israel’s hotel rooms were being used to house families evacuated from communities near the Gaza Strip after the Oct. 7 rampage by Hamas gunmen, the head of the Israel Hotel Association said.

* Pope Francis’ representative in the Holy Land said he was willing to exchange himself for Israeli children taken hostage by Hamas and held in Gaza.

* Cancelled tours, empty hotels: Israeli and Palestinian tourism reels as the conflict escalates.

* Gaza health officials are storing the bodies of Palestinians killed by Israeli air strikes in ice-cream freezer trucks because moving them to hospitals is too risky and cemeteries lack space.  

INTERNATIONAL

* China’s foreign minister Wang Yi met with his Russian counterpart Sergei Lavrov in Beijing, and exchanged views on the Israel-Hamas conflict, the Chinese foreign ministry said.

* U.S. and Israeli officials are discussing the possibility of a visit to Israel soon by U.S. President Joe Biden.

* Malaysia does not agree with Western pressure to condemn Hamas, its prime minister said, despite international outrage over the militant group’s unprovoked and deadly attack on Israel.

* Egypt said Israel was not cooperating with delivery of aid into Gaza and evacuations of foreign passport holders, leaving hundreds of tonnes of supplies stuck.

* U.S. Secretary of State Antony Blinken will return to Israel on Monday, a senior State Department official said, extending his Middle East shuttle diplomacy by a day.

* A group of U.S. senators will travel to the Middle East to encourage Israel and Saudi Arabia to continue talks on normalizing relations, South Carolina Senator Lindsey Graham said on NBC’s “Meet the Press.”

INSIGHTS AND EXPLAINERS

* How Hamas secretly created a ‘mini-army’ to fight Israel.

* Hamas uses a global financing network to funnel support from charities and friendly nations, passing cash through Gaza tunnels or using cryptocurrencies to bypass international sanctions.

* What are the origins of Hezbollah: Iran founded it in 1982 to export its 1979 Islamic Revolution and fight Israeli forces after their 1982 invasion of Lebanon.

MARKETS AND BUSINESS

* Defense funds saw sharp inflows as the conflict threatened Middle East stability.

* Brent oil futures steadied above $90 a barrel on Monday after topping that level on Friday, as investors waited to see if the Israel-Hamas conflict escalates further.

* Saudi Arabia’s $778 billion sovereign wealth fund has mandated banks to arrange a bond sale, the first high-profile debt issue from the region since the Hamas attack.

* Stablecoin issuer Tether has frozen 32 cryptocurrency wallet addresses containing a combined $873,118 it said were linked to “terrorism and warfare” in Israel and Ukraine, the company said.

* Crude oil held above $90 a barrel, equities slid and the safe-haven dollar was firm amid heightened anxiety over escalating violence in Gaza and the prospect the conflict could spread in the region.

(Compiling by Stephen Farrell, Robert MacMillan and Diane Craft; Editing by Sandra Maler, Miral Fahmy and Bernadette Baum)

By Savyata Mishra

(Reuters) -Most Wall Street brokerages, including J.P.Morgan and Goldman Sachs, kicked off coverage on Instacart with a bullish view, betting on the grocery delivery app’s growth amid a shift to online shopping.

Shares of the company, formally called Maplebear, were down 1% on Monday. The stock — following a lukewarm debut in September — closed at $25.57 on Friday, below its $30 initial public offering (IPO) price.

At least half of Instacart’s 20 IPO underwriters have initiated coverage with their top ratings after the quiet period ended.

Brokerages expect Instacart’s advertising business to drive profitability in the near to medium term, also boosted by its focus on the typically higher-margin, non-discretionary groceries category.

“As a technology company unburdened by inventory or large infrastructure, Instacart requires little capital expenditure to fund operations, with the potential for significant margin expansion,” Baird analyst Colin Sebastian wrote in a note.

Incremental growth in the company’s gross transaction value (GTV), however, will be challenged by competition from delivery firms such as Uber, DoorDash, Amazon and big-box retailer Walmart, said Scott Devitt, analyst at Wedbush — the only brokerage with a price target below the IPO price.

“Lack of exposure to growing grocery businesses such as Walmart and Amazon could drive share loss at Instacart,” said Justin Post, analyst with BofA Global Research, which has a price target of $30.

Instacart’s slow growth compared to rivals is a top concern, as a reduction in food stamp benefits and a shift back to in-store shopping could limit GTV growth, according to Piper Sandler analyst Alexander Potter.

J.P.Morgan analysts flagged that the popularity of weight-loss drugs could weigh on consumer spending on food, challenging the company’s growth and profitability.

As of Friday, the six brokerages that were not involved in the IPO started coverage with an average rating of “hold”, LSEG data showed.

Instacart trades at 54.4 times its forward earnings, according to LSEG data.

(Reporting by Savyata Mishra in Bengaluru; Editing by Shilpi Majumdar)

By Chibuike Oguh

NEW YORK (Reuters) – Lululemon Athletica’s stock jumped by more than 10% to an almost two-year high on Monday buoyed by the addition of the Canadian sportswear maker into the Wall Street benchmark S&P 500 index.

Lululemon will replace Activision Blizzard in the S&P 500 index, effective before the market open on Oct. 18, after Microsoft completed its blockbuster $69 billion deal to acquire the videogame publisher, according to an S&P Dow Jones Indices statement late on Friday.

Inclusion of a company into the S&P 500 usually causes demand for its shares to jump as mutual fund managers and other institutional investors tracking the index begin adding the stock to their portfolios.

Lululemon’s shares rose as high as $416.01 on Monday, their highest level since December 2021. The stock is now up nearly 30% year-to-date, giving the company a market capitalization of more than $52 billion.

In September, Lululemon agreed to a deal with Peloton Interactive to become the primary athletic-apparel maker for the U.S. fitness bike manufacturer. In return, Peloton would become the exclusive digital fitness content provider for the apparel maker, developing all content for Lululemon Studio beginning in early 2024.

Lululemon had lifted its third-quarter annual profit and revenue forecast for a second time in August, citing an improvement in its North American business.

The company’s stock is trading at about 28 times its next 12-month’s earnings, compared to its five-year historical average of about 40 times, per LSEG data.

Among the 32 analysts covering Lululemon’s stock, the median price target is $450 and their current recommendation is “buy”, LSEG data shows.

(Reporting by Chibuike Oguh in New York; Editing by Lance Tupper and Sharon Singleton)

By Michelle Nichols

UNITED NATIONS (Reuters) – The United Nations Security Council was due to vote on Monday on rival draft resolutions on Israel and Gaza that focus largely on the humanitarian situation, but it was unclear whether either stood a chance of being adopted.

The draft texts have been submitted by Russia and Brazil. A resolution needs at least nine of the 15 members’ votes to pass and no vetoes by Britain, China, France, Russia or the United States, the council’s five permanent members.

The United States has traditionally shielded its ally Israel in any action by the Security Council. A spokesperson for the U.S. mission to the United Nations declined to comment when asked about the impending votes.

Russia’s draft calls for a humanitarian ceasefire, while the Brazilian draft calls for humanitarian pauses to allow aid access. Both condemn violence and hostilities against civilians and all acts of terrorism and call for the release of hostages.

The Brazilian draft condemns the Palestinian militant Hamas for its attacks on Israel, while the Russian draft does not name Hamas, which attacked Israel on Oct. 7.

Without naming Israel, the Brazilian text also calls for the rescinding of the Israeli order for civilians and U.N. staff in northern Gaza Strip to relocate to southern Gaza.

“We are convinced that our draft better meets the humanitarian needs of the civilian population in Gaza and doesn’t contain political elements that could divide members of the UNSC and affect its role in the settlement of the crisis,” Russia’s deputy U.N. Ambassador Dmitry Polyanskiy posted on X, formerly known as Twitter.

Israel has vowed to annihilate Hamas – which controls the Gaza Strip – after its fighters stormed Israeli towns, killed 1,300 people and seized hostages in the worst attack on civilians in Israel’s 75-year-old history.

Israel is preparing for a ground offensive in Gaza while subjecting the strip to the most intense bombardment ever, putting the enclave under total siege. Gaza authorities say at least 2,750 people have been killed.

Israeli forces kept up their bombardment of Gaza on Monday after diplomatic efforts to arrange a ceasefire to allow foreign passport holders to leave and aid to be brought into the besieged Palestinian enclave failed.

(Reporting by Michelle Nichols; editing by Susan Heavey and Howard Goller)

By Tom Wilson, Elizabeth Howcroft and Hannah Lang

LONDON/WASHINGTON (Reuters) -Bitcoin rose suddenly on Monday, before giving up nearly all its gains, after asset manager BlackRock denied a crypto media report that U.S. regulators had approved its high-profile application for a crypto investment product.

Bitcoin, known for its volatility, was last trading up 3.82% at $28,211, after earlier rising as much as 10% to $29,900, its highest since August.

Crypto news outlet Coin Telegraph had earlier reported that the U.S. Securities and Exchange Commission had approved an application by major asset manager BlackRock for a spot bitcoin exchange-traded fund, before later retracting the story.

But bitcoin fell sharply after a Fox Business reporter said on the social media platform X that BlackRock denied the report.

BlackRock later confirmed to Reuters that “the iShares Bitcoin ETP application is still under review by the SEC.” Sources close to the SEC also confirmed that the application is still pending.

“Crypto markets have just shown how sensitive they are to any potential good news, with their premature rally today on rumors of the approval of a spot bitcoin ETF,” said Ben Laidler, global markets strategist at eToro.

In a post on X, Coin Telegraph apologized for its earlier post, which it said “led to the dissemination of inaccurate information.”

“An internal investigation is currently underway. We are committed to transparency and will share the findings of the investigation with the public once it is concluded within 3 hours,” Coin Telegraph said. It also deleted its initial post.

Crypto markets have been awaiting news on several pending spot bitcoin ETF applications, which, if approved, are widely expected to drive investment in the sector. The SEC has denied all spot bitcoin ETF applications on the grounds applicants have not shown they can protect investors from market manipulation.

“The move does show how monomaniacally obsessed the bitcoin market is with the coming spot ETFs,” said Joseph Edwards, head of research at London crypto firm Enigma Securities.

While the news about the SEC approving a spot bitcoin ETF on Monday was a “false alarm,” it was also a “good dress rehearsal” for when the regulator delivers a final decision on the applications, said Lucas Kiely, chief investment officer at Yield App.

“Headline risk is creating a lot of volatility ahead of this SEC announcement, with everyone trying to get ahead of it as the market will move markedly either way depending on the decision,” he said.

Reuters was first to report on Oct. 13 that the SEC would not appeal a recent court ruling that found it was wrong to reject an application from Grayscale Investments to create a spot bitcoin ETF, in a case that has been closely watched by the cryptocurrency industry.

The District of Columbia Court of Appeals in Washington is now expected to issue a mandate within the next week specifying how its decision in the case should be executed, which will likely include instructing the SEC to revisit Grayscale’s application.

(Reporting by Tom Wilson and Elizabeth Howcroft in London and Hannah Lang in Washington; additonal reporting by Suzanne McGee; Editing by Tommy Reggiori Wilkes, Sharon Singleton and Josie Kao)

By Hadeel Al Sayegh, John O’Donnell and Elizabeth Howcroft

LONDON/DUBAI (Reuters) -Palestinian militant group Hamas uses a global financing network to funnel support from charities and friendly nations, passing cash through Gaza tunnels or using cryptocurrencies to bypass international sanctions, according to experts and officials.

However, Hamas, which governs the Gaza Strip, will face even more obstacles accessing funds after the rampage by the group’s gunmen that killed hundreds of Israelis, mainly civilians. Israel has responded with the heaviest bombardment of Gaza in 75 years of conflict.

Earlier this week, Israeli police said they froze a Barclays bank account the authorities said was linked to Hamas fundraising and blocked cryptocurrency accounts used to gather donations, without specifying how many accounts or the value of the assets.

The move provided a glimpse of a complex financial web, some legitimate, much hidden, that underpins Hamas, or the Islamic Resistance Movement, and its government in the Gaza Strip, which it has run since 2007.

Matthew Levitt, a former U.S. official specialised in counterterrorism, estimated the bulk of Hamas’ budget of more than $300 million came from taxes on business, as well as from countries including Iran and Qatar or charities.

Last February, the State Department said that Hamas raises funds in other Gulf countries and gets donations from Palestinians, other expatriates and its own charities.

Reuters was unable to reach Hamas officials for comment for this story. In the past, Hamas has said financial restrictions placed on its donors were an attempt to neutralise legitimate resistance against Israel.

Hamas, sanctioned as a terrorist organization by the United States and countries such as Britain, had increasingly used cryptocurrencies, credit cards or contrived trade deals to avoid mounting international restrictions, Levitt said.

“Hamas has been one of the more successful users of crypto for the financing of terrorism,” said Tom Robinson, co-founder of blockchain research firm Elliptic.

However, this year Hamas said it would back away from crypto, after a spate of losses. Cryptocurrency’s ledger system can make such transactions traceable.

Blockchain researchers TRM Labs said this week in a research note that crypto fundraising has previously increased following rounds of violence involving Hamas. After fighting in May 2021, Hamas-controlled crypto addresses received more than $400,000, TRM Labs said.

However, since last weekend’s violence, prominent Hamas-linked support groups had moved just a few thousands dollars through crypto, TRM noted.

“One likely reason for the low donation volume is that Israeli authorities are targeting them immediately,” TRM said, adding that Israel had seized cryptocurrency worth “tens of millions of dollars” from Hamas-linked addresses in recent years.

Between Dec. 2021 and April this year, Israel seized almost 190 crypto accounts it said were linked to Hamas.

SHIPS AND SHELLS

Whether through crypto or other means, Hamas’ allies have found ways to get money to Gaza. The U.S. State Department has said that Iran provides up to $100 million annually in support to Palestinian groups including Hamas, and has cited methods of moving the money through shell companies, shipping transactions and precious metals.

Iranian authorities did not immediately respond to a request for comment.

By last year, Hamas had established a secret network of companies managing $500 million of investments in companies from Turkey to Saudi Arabia, the U.S. Treasury has said, announcing sanctions on the firms in May, 2022.

Israel has long accused Iran’s clerical rulers of stoking violence by supplying arms to Hamas. Tehran, which does not recognise Israel, says it gives moral and financial support to the group.

Backing the Palestinian cause has been a pillar of the Islamic Republic since the 1979 revolution and a way for the country to fashion itself as a leader of the Muslim world.

Gas-rich Qatar too has paid hundreds of millions of dollars to Gaza since 2014, at one point spending $30 million per month to help operate the enclave’s sole power plant and to support needy families and public servants in the Hamas-run government.

“Qatari aid provides 100 dollars to the poorest Palestinian families and extends the period of electricity during a day in Gaza,” a Qatari official said in response to a request for government comment, adding that it had helped “maintain stability and quality of life for … Palestinian families”.

Qatar walks a foreign policy tightrope, hosting the region’s largest U.S. military base, the Taliban and other groups, often allowing it to mediate.

CASH RULES

Qatar’s funding for Gaza actually passes through Israel, a source familiar with the process said.

The funds are transferred electronically from Qatar to Israel. Israeli and U.N. officials hand-carry cash over the border to Gaza.

The cash is distributed directly to needy families and public servants in Gaza and each family or individual must sign next to their name that they’ve received the cash. One copy of that sheet goes to Israel, one goes to the UN and one goes to Qatar.

“Qatari aid to the Gaza Strip is fully coordinated with Israel, the UN and the U.S.,” the Qatari government official said.

In recent years, Qatar bought fuel from Israel for Gaza’s sole power station. It also sent Egyptian fuel that Hamas can resell, using the proceeds for salaries.

Stephen Reimer of the think tank, Royal United Services Institute, predicted fresh attempts to fully restrict the group’s access to formal financial channels would have limited success. “Their financing tactics have grown to circumvent these.”

(Additional reporting by Saeed Azhar in New York, Sinead Cruise, Tom Wilson and Tommy Wilkes in London, Andrew Mills in Doha and Parisa Hafezi in Dubai, writing by John O’Donnell; Editing by Frank Jack Daniel)

By Hadeel Al Sayegh, John O’Donnell and Elizabeth Howcroft

LONDON/DUBAI (Reuters) – Palestinian militant group Hamas uses a global financing network to funnel support from charities and friendly nations, passing cash through Gaza tunnels or using cryptocurrencies to bypass international sanctions, according to experts and officials.

However, Hamas, which governs the Gaza Strip, will face even more obstacles accessing funds after the rampage by the group’s gunmen that killed hundreds of Israelis, mainly civilians. Israel has responded with the heaviest bombardment of Gaza in 75 years of conflict.

Earlier this week, Israeli police said they froze a Barclays bank account the authorities said was linked to Hamas fundraising and blocked cryptocurrency accounts used to gather donations, without specifying how many accounts or the value of the assets.

The move provided a glimpse of a complex financial web, some legitimate, much hidden, that underpins Hamas, or the Islamic Resistance Movement, and its government in the Gaza Strip, which it has run since 2007.

Matthew Levitt, a former U.S. official specialised in counterterrorism, estimated the bulk of Hamas’ budget of more than $300 million came from taxes on business, as well as from countries including Iran and Qatar or charities.

Last February, the State Department said that Hamas raises funds in other Gulf countries and gets donations from Palestinians, other expatriates and its own charities.

Reuters was unable to reach Hamas officials for comment for this story. In the past, Hamas has said financial restrictions placed on its donors were an attempt to neutralise legitimate resistance against Israel.

Hamas, sanctioned as a terrorist organization by the United States and countries such as Britain, had increasingly used cryptocurrencies, credit cards or contrived trade deals to avoid mounting international restrictions, Levitt said.

“Hamas has been one of the more successful users of crypto for the financing of terrorism,” said Tom Robinson, co-founder of blockchain research firm Elliptic.

However, this year Hamas said it would back away from crypto, after a spate of losses. Cryptocurrency’s ledger system can make such transactions traceable.

Blockchain researchers TRM Labs said this week in a research note that crypto fundraising has previously increased following rounds of violence involving Hamas. After fighting in May 2021, Hamas-controlled crypto addresses received more than $400,000, TRM Labs said.

However, since last weekend’s violence, prominent Hamas-linked support groups had moved just a few thousands dollars through crypto, TRM noted.

“One likely reason for the low donation volume is that Israeli authorities are targeting them immediately,” TRM said, adding that Israel had seized cryptocurrency worth “tens of millions of dollars” from Hamas-linked addresses in recent years.

Between Dec. 2021 and April this year, Israel seized almost 190 crypto accounts it said were linked to Hamas.

SHIPS AND SHELLS

Whether through crypto or other means, Hamas’ allies have found ways to get money to Gaza. The U.S. State Department has said that Iran provides up to $100 million annually in support to Palestinian groups including Hamas, and has cited methods of moving the money through shell companies, shipping transactions and precious metals.

Iranian authorities did not immediately respond to a request for comment.

By last year, Hamas had established a secret network of companies managing $500 million of investments in companies from Turkey to Saudi Arabia, the U.S. Treasury has said, announcing sanctions on the firms in May, 2022.

Israel has long accused Iran’s clerical rulers of stoking violence by supplying arms to Hamas. Tehran, which does not recognise Israel, says it gives moral and financial support to the group.

Backing the Palestinian cause has been a pillar of the Islamic Republic since the 1979 revolution and a way for the country to fashion itself as a leader of the Muslim world.

Gas-rich Qatar too has paid hundreds of millions of dollars to Gaza since 2014, at one point spending $30 million per month to help operate the enclave’s sole power plant and to support needy families and public servants in the Hamas-run government.

“Qatari aid provides 100 dollars to the poorest Palestinian families and extends the period of electricity during a day in Gaza,” a Qatari official said in response to a request for government comment, adding that it had helped “maintain stability and quality of life for … Palestinian families”.

Qatar walks a foreign policy tightrope, hosting the region’s largest U.S. military base, the Taliban and other groups, often allowing it to mediate.

CASH RULES

Qatar’s funding for Gaza actually passes through Israel, a source familiar with the process said.

The funds are transferred electronically from Qatar to Israel. Israeli and U.N. officials hand-carry cash over the border to Gaza.

The cash is distributed directly to needy families and public servants in Gaza and each family or individual must sign next to their name that they’ve received the cash. One copy of that sheet goes to Israel, one goes to the UN and one goes to Qatar.

“Qatari aid to the Gaza Strip is fully coordinated with Israel, the UN and the U.S.,” the Qatari government official said.

In recent years, Qatar bought fuel from Israel for Gaza’s sole power station. It also sent Egyptian fuel that Hamas can resell, using the proceeds for salaries.

Stephen Reimer of the think tank, Royal United Services Institute, predicted fresh attempts to fully restrict the group’s access to formal financial channels would have limited success. “Their financing tactics have grown to circumvent these.”

(Additional reporting by Saeed Azhar in New York, Sinead Cruise, Tom Wilson and Tommy Wilkes in London, Andrew Mills in Doha and Parisa Hafezi in Dubai, writing by John O’Donnell; Editing by Frank Jack Daniel)