CAIRO, Egypt (AP) — Palestinians face inflated prices for groceries and batteries, hospitals have turned to smugglers for medicine and equipment, and Israeli soldiers and other middlemen are accused of pocketing millions of dollars as the smuggling of goods restricted by Israel into the Gaza Strip has boomed, according to an Associated Press investigation based on court documents and interviews with traders, truckers and officials.

Cigarettes and tobacco — banned from entry into Gaza since the Hamas-led October 7, 2023, invasion of Israel that sparked the war in the Strip — rake in the biggest profits for smugglers and merchants, officials and residents say. But everything from iPhones and solar panels to fuel and anesthetics are also brought into the tiny coastal territory illegally. Israel restricts quantities of some goods and bans others outright. It defines many as “dual use” — including concrete, vehicle parts and X-ray machines — asserting they could be repurposed by the terror group’s operatives for military functions.

To build a picture of the illicit trade, The Associated Press analyzed Israeli court documents and spoke to five major traders who import smuggled goods, three merchants who sell them, and two truckers — all on condition of anonymity because of their roles in the illegal smuggling business and concerns about their safety in Gaza. AP also interviewed four Palestinian officials, two on condition of anonymity because of worries about retribution from Israel, Hamas or merchants; two UN officials, on condition of anonymity over concern for their jobs; and a dozen Palestinian residents, who spoke about how they get everyday items and their skyrocketing costs.

AP found a rush from all sides to profit off the tight restrictions imposed by Israel on Gaza and its 2 million residents, most of whom have been displaced by the war. Smuggling rings — which have long flourished, circumventing two decades of Israeli blockades and building a network of businessmen and collaborators — pull in millions of dollars. Payoffs go to Israeli troops, drivers, warehouse workers and others on both sides of the border, according to traders and court documents.

“The occupation has left no other option before us. Smuggling has become routine,” one trader said, noting that some in Israel’s military are willing to help — for a price. “We benefit, they benefit and the people in Gaza benefit because we provide goods, including food, to the market.”

The Israeli military said via email that it takes the issue of smuggling “very seriously and works to prevent it.” It said any cases of suspected involvement by Israeli military personnel are “examined and handled in accordance with the law.” But military officials did not answer a list of detailed questions from AP on the roles of soldiers or Gaza’s government in smuggling.

Gaza’s Hamas-run government also takes in some of the profit, according to merchants and one Palestinian official. Merchants call it “taxing” — on both smuggled goods and those brought in legally.

Mohammad Barbakh, of the Hamas-run Economy Ministry in Gaza, told AP the government receives up to 20 percent of the price of any 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’t refer to their cut as “taxes” and that they haven’t taxed goods entering legally since the war’s start.

How smuggled goods flow into Gaza

Since the war began, Israel has tightly controlled all entry of food, aid and goods into the Gaza Strip, including a total aid blockade that shut off entry of supplies entirely for nearly three months last year.

Several humanitarian organizations described famine conditions in the Strip in the aftermath of the total blockade, though updated data released after the October ceasefire threw the classification into question.

Throughout the war in Gaza, Israel accused Hamas of stealing aid for its own fighters or to........

© The Times of Israel