The Israeli government has introduced new regulations requiring that all humanitarian aid entering the Gaza Strip be sourced exclusively from Israeli companies, deepening concerns over the politicisation of relief operations.
The controversial Gaza Humanitarian Foundation (GHF), the sole entity authorised by Israel to distribute aid in the enclave, confirmed the policy shift in comments to the Jewish News Service (JNS).
“New Israeli regulations mandate that all food items going into Gaza must be procured and packaged inside Israel, and we are abiding by that requirement,” a GHF spokesperson said. Until recently, the group had sourced goods from both Israel and the occupied West Bank.
Neither the office of Prime Minister Benjamin Netanyahu nor the Israeli Defence Ministry responded to JNS inquiries on the matter.
Mounting Scrutiny of GHF
Established in May, the GHF has faced mounting criticism from humanitarian groups and UN agencies over its handling of aid distribution. Reports indicate that at least 2,036 Palestinians have been killed and more than 15,000 wounded while queuing at GHF sites or attempting to collect food.
Israeli soldiers have admitted to deliberately shooting unarmed civilians waiting for aid, following orders from their commanders. Witnesses also allege that US subcontractors fired on Palestinians at aid collection points.
The UN has repeatedly condemned the militarisation of humanitarian relief in Gaza, stressing that GHF’s model undermines international humanitarian principles.
Economic Motives and Isolation
Analysts suggest the new regulations are designed not only to tighten Israel’s control over aid but also to funnel economic benefits to Israeli businesses amid growing international isolation.
Israel’s war in Gaza has triggered a sharp downturn in its economy, with foreign investment and consumer confidence plunging. A large number of conscripts have been pulled from the workforce, exacerbating the slowdown.
Earlier this week, the European Commission proposed suspending free trade with Israel, its largest commercial partner, citing the destruction in Gaza City.
Addressing economic concerns, Netanyahu hinted on Monday that Israel may need to adopt “autarkic characteristics” — pursuing self-sufficiency in sectors such as arms production — if global restrictions tighten further.
“Israel is in a sort of isolation,” Netanyahu said at a finance ministry conference in Jerusalem. “We may find ourselves in a situation where our arms industries are blocked. We will need to develop arms industries here – not only research and development, but also production.”
The comments rattled markets, sending shares on the Tel Aviv Stock Exchange downward and prompting warnings from leading business figures. The Israel Business Forum said the government was steering the country toward a “political, economic and social abyss,” while the Histadrut trade union warned that “Israeli society is exhausted, and our status in the world is very bad.”
Netanyahu later walked back his remarks, saying on Tuesday there had been a “misunderstanding” and attempting to calm investor fears.
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