Smuggling Rings Move Millions in Restricted Goods into Gaza

An Associated Press investigation has uncovered a booming illicit trade of restricted goods into the Gaza Strip, where smuggling rings generate millions of dollars by circumventing Israeli blockades. The trade involves a network of Israeli and Palestinian middlemen, including Israeli reserve soldiers who accept bribes to transport banned items through military vehicles and the Kerem Shalom crossing. Some individuals involved in these networks are accused of earning over $2 million.

Hamas, the governing authority in Gaza, profits by taking a percentage of the value of smuggled goods. Officials estimate the group has collected up to $100 million since a recent ceasefire to fund social services and civil service salaries. While the Gaza government's media office denies these funds support military operations, the trade has become vital to the local economy.

Israel restricts approximately 150 categories of dual-use items to prevent them from being repurposed for military functions. Smugglers primarily move cigarettes and tobacco, alongside iPhones, solar panels, fuel, and medical equipment. This scarcity has caused extreme price inflation for residents, with vehicle batteries costing $2,300 and cigarettes reaching $140 per pack.

The Israeli military states it works to prevent smuggling and handles personnel involvement according to the law. Court documents indicate several rings have been indicted since late 2025, including a commander in a military engineering unit accused of accepting $120,000 to smuggle cigarettes.