
No proof Hamas stole Gaza aid, says USAID analysis
The analysis, which has not been previously reported, was conducted by a bureau within the US Agency for International Development and completed in late June. It examined 156 incidents of theft or loss of US-funded supplies reported by US aid partner organisations between October 2023 and this May.
It found "no reports alleging Hamas' benefited from US-funded supplies, according to a slide presentation of the findings seen by Reuters.
Disputing the statement
A State Department spokesperson disputed the findings, saying there is video evidence of Hamas looting aid, but provided no such videos. The spokesperson also accused traditional humanitarian groups of covering up "aid corruption."
The sons of Palestinian journalist Adam Abu Harbid, killed in overnight Israeli strikes, mourn before their father's funeral at the Al-Shifa hospital in Gaza City on Thursday.
AFP
The findings were shared with the USAID's inspector general's office and State Department officials involved in Middle East policy, said two sources familiar with the matter, and come as dire food shortages deepen in the devastated enclave.
Israel says it is committed to allowing in aid but must control it to prevent it from being stolen by Hamas, which it blames for the crisis. The UN World Food Programme says nearly a quarter of Gaza's 2.1 million Palestinians face famine-like conditions, thousands are suffering acute malnutrition, and the World Health Organization and doctors in the enclave report starvation deaths of children and others.
The UN also estimates that Israeli forces have killed more than 1,000 people seeking food supplies, the majority near the militarised distribution sites of the Gaza Humanitarian Foundation (GHF), the new private aid group that uses a for-profit US logistics firm run by a former CIA officer and armed US military veterans.
Mourners carry the body of a Palestinian journalist, Adam Abu Harbid, killed in an overnight Israeli airstrike, outside Al-Shifa hospital in Gaza City on Friday.
Reuters
The study was conducted by the Bureau of Humanitarian Assistance (BHA) of USAID, which was the largest funder of assistance to Gaza before the Trump administration froze all US foreign aid in January, terminating thousands of programmes. It has also begun dismantling USAID, whose functions have been folded into the State Department.
The analysis found that at least 44 of the 156 incidents where aid supplies were reported stolen or lost were "either directly or indirectly' due to Israeli military actions, according to the briefing slides.
Israel's military did not respond to questions about those findings.
The study noted a limitation: because Palestinians who receive aid cannot be vetted, it was possible that US-funded supplies went to administrative officials of Hamas, the Islamist rulers of Gaza.
Windows of the shuttered former offices of the US Agency for International Development (USAID) in Washington.
Reuters
One source familiar with the study also cautioned that the absence of reports of widespread aid diversion by Hamas "does not mean that diversion has not occurred.'
The war in Gaza began after Hamas attacked Israel in October 2023, killing 1,200 people and capturing 251 hostages, according to Israeli tallies. Nearly 60,000 Palestinians have been killed since the Israeli assault began, according to Palestinian health officials.
Hamas steals aid to boost its finances, says Israel
Israel, which controls access to Gaza, has said that Hamas steals food supplies from UN and other organizations to use to control the civilian population and boost its finances, including by jacking up the prices of the goods and reselling them to civilians.
Asked about the USAID report, the Israeli military told Reuters that its allegations are based on intelligence reports that Hamas militants seized cargoes by "both covertly and overtly" embedding themselves on aid trucks.
Those reports also show that Hamas has diverted up to 25% of aid supplies to its fighters or sold them to civilians, the Israeli military said, adding that GHF has ended the militants' control of aid by distributing it directly to civilians.
Hamas denies the allegations.
A Hamas security official said that Israel has killed more than 800 Hamas-affiliated police and security guards trying to protect aid vehicles and convoy routes. Their missions were coordinated with the UN.
A man waves a Palestinian flag during the protest 'Global Pot-Banging for Gaza' in Guadalajara, Mexico on Thursday.
AFP
Reuters could not independently verify the claims by Hamas and Israel, which has not made public proof that the militants have systematically stolen aid.
GHF also accuses Hamas of massive aid theft in defending its distribution model. The UN and other groups have rejected calls by GHF, Israel and the US to cooperate with the foundation, saying it violates international humanitarian principles of neutrality.
In response to a request for comment, GHF referred Reuters to a July 2 Washington Post article that quoted an unidentified Gazan and anonymous Israeli officials as saying Hamas profited from the sales and taxing of pilfered humanitarian aid.
Aid groups must report losses
The 156 reports of theft or losses of supplies reviewed by BHA were filed by UN agencies and other humanitarian groups working in Gaza as a condition of receiving US aid funds.
The second source familiar with the matter said that after receiving reports of US-funded aid thefts or losses, USAID staff followed up with partner organizations to try to determine if there was Hamas involvement.
Those organizations also would "redirect or pause" aid distributions if they learned that Hamas was in the vicinity, the source said. Aid organizations working in Gaza also are required to vet their personnel, sub-contractors and suppliers for ties to extremist groups before receiving US funds, a condition that the State Department waived in approving $30 million for GHF last month.
The slide presentation noted that USAID partners tended to over-report aid diversion and theft by groups sanctioned or designated by the U.S. as foreign terrorist organizations - such as Hamas and Palestinian Islamic Jihad - because they want to avoid losing U.S. funding.
Of the 156 incidents of loss or theft reported, 63 were attributed to unknown perpetrators, 35 to armed actors, 25 to unarmed people, 11 directly to Israeli military action, 11 to corrupt subcontractors, five to aid group personnel "engaging in corrupt activities,' and six to "others," a category that accounted for "commodities stolen in unknown circumstances,' according to the slide presentation.
The armed actors "included gangs and other miscellaneous individuals who may have had weapons,' said a slide. Another slide said "a review of all 156 incidents found no affiliations with" US-designated foreign terrorist organizations, of which Hamas is one.
"The majority of incidents could not be definitively attributed to a specific actor,' said another slide. "Partners often largely discovered the commodities had been stolen in transit without identifying the perpetrator.'
It is possible there were classified intelligence reports on Hamas aid thefts, but BHA staff lost access to classified systems in the dismantlement of USAID, said a slide.
However, a source familiar with US intelligence assessments told Reuters that they knew of no US intelligence reports detailing Hamas aid diversions and that Washington was relying on Israeli reports.
The BHA analysis found that the Israeli military "directly or indirectly caused' a total of 44 incidents in which US-funded aid was lost or stolen. Those included the 11 attributed to direct Israeli military actions, such as airstrikes or orders to Palestinians to evacuate areas of the war-torn enclave.
Losses indirectly attributed to Israeli military included cases where they compelled aid groups to use delivery routes with high risks of theft or looting, ignoring requests for alternative routes, the analysis said.
Reuters
Hashtags

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles


Middle East Eye
41 minutes ago
- Middle East Eye
UN chief: 'We must never accept hunger as a weapon of war'
United Nations Secretary-General Antonio Guterres has urged the international community to reject hunger as a weapon of war amid mounting outrage over Israeli-imposed starvation in Gaza. 'Hunger fuels instability and undermines peace. We must never accept hunger as a weapon of war,' the UN chief said via video-conference. Israel has been blocking aid from entering Gaza for several months, while baselessly blaming the ongoing humanitarian crisis in the enclave on delivery inefficiencies caused by UN aid administrators.


Middle East Eye
an hour ago
- Middle East Eye
Israeli settlers torch cars, vandalise property in Taybeh attack
Israeli settlers torched two vehicles and spray-painted racist graffiti in the majority Christian-Palestinian village of Taybeh in the occupied West Bank early on Monday morning. According to Anadolu Agency, one of the homes belonged to a Christian-Palestinian journalist and the other to a village council member. There are no reports of settler arrests, which are rare occurrences amid near-daily settler attacks occurring across the West Bank. Settler attacks in Taybeh have increased in recent weeks, attracting concern from Western leaders and religious figures. A visit to Taybeh from a delegation of Christian leaders and European diplomats on 14 July was followed by a visit from US ambassador to Israel Mike Huckabee on 19 July. He condemned the attacks as "unacceptable". "To commit an act of sacrilege by desecrating a place that is supposed to be a place of worship, it is an act of terror, and it is a crime," said Hukabee in a statement.


Middle East Eye
2 hours ago
- Middle East Eye
Trump's strategy for Middle East 'peace' is built on Israeli dominance. It will fail
The Trump administration is attempting to reshape the Middle East after launching strikes on Iran last month, adopting a strategy characterised by "peace through strength" and "commerce, not chaos". While this approach is presented as pragmatic, it risks destabilising the region in favour of maximising US and Israeli military and economic advantage. President Donald Trump considers himself an "expert dealmaker", believing that calculated military strikes create leverage for diplomatic gains - particularly by pressuring Iran back to the negotiating table. His strategy emphasises overwhelming but short-term military force to achieve defined goals, avoiding prolonged entanglements or "forever wars". It also marks a rejection of nation-building, shifting the burden of regional stability onto local partners. Though the strategic value of Middle Eastern energy resources has declined for the US, the region remains crucial - perhaps even more so under the current administration. As Med This Week reports, three primary factors shape recent US actions. New MEE newsletter: Jerusalem Dispatch Sign up to get the latest insights and analysis on Israel-Palestine, alongside Turkey Unpacked and other MEE newsletters The first is the ideological alliance between far-right governments in the US and Israel, which transcends the traditional "special relationship" and reflects a deeper political and strategic alignment. The administration also views Israeli hegemony as a vehicle for regional stability, envisioning a dominant "Greater Israel", backed by overwhelming US support, capable of unilaterally enforcing peace and marginalising Iran. At its core, the Trump doctrine envisions a Greater Israel, backed by US power, enforcing peace and sidelining Iran Finally, personal financial interests - particularly those of Trump and his family - were prominently on display during his recent Gulf visit. The immediate objective of the 12-day war was to dismantle Iran's nuclear infrastructure and prevent it from acquiring nuclear weapons. Trump declared key sites "destroyed" or "shut down", hailing the campaign as a critical blow against a perceived existential threat. (A recent US intelligence report found that only one of the three targeted nuclear facilities was completely destroyed, with the others expected to be operational again within months.) These military operations have significantly reshaped regional power dynamics, pushing forward the Trump administration's regional strategy: normalising relations between Israel and Arab states, particularly Saudi Arabia, and potentially extending to Oman, Indonesia, Qatar and even Syria. Yet this pursuit of realignment remains constrained by Israel's ongoing war on Gaza. A ceasefire and the release of Israeli hostages are seen as prerequisites for advancing and expanding normalisation. Israel: A hegemonic power? The US has demonstrated its willingness to act unilaterally with overwhelming force - particularly through the use of "bunker-buster" bombs on Iranian nuclear sites. This was portrayed as a show of unmatched American might, aimed not only at Iran but also as a deterrent to rivals like China and Russia. America's costly backing for Israel is enabling China's unstoppable rise Read More » Meanwhile, Israel has sought to project itself as a formidable military force with deep intelligence reach into Iran's nuclear and security infrastructure. Some Israeli officials have even claimed the country has joined the ranks of global powers, though the strikes, which killed large numbers of civilians, have drawn widespread criticism and raised questions about the legitimacy of such claims. Yet the question remains: can Israel truly become a hegemonic power in the region? Despite its recent operations and short-term tactical gains, Israel faces structural and political barriers to sustained dominance. It remains heavily reliant on US military, diplomatic and economic support. Deep-rooted regional conflicts persist, particularly the unresolved Palestinian issue, which continues to inflame public opinion and obstruct meaningful diplomatic engagement. Key regional powers such as Saudi Arabia, Turkey and Egypt are unlikely to accept Israeli expansionism or hegemony. Meanwhile, Iran's political will to pursue its nuclear ambitions appears undiminished, with some analysts suggesting that the recent strikes may ultimately accelerate, rather than deter, its nuclear development. Iran's leadership, especially Supreme Leader Ayatollah Ali Khamenei, is unlikely to negotiate from a position of perceived weakness. The recent military escalation follows the US "maximum pressure" campaign and its hostile stance towards Iran after withdrawing from the Joint Comprehensive Plan of Action (JCPOA), or Iran nuclear deal, in 2018. Together, these developments have reinforced Iranian mistrust and further narrowed the space for diplomacy. Furthermore, there is no credible assessment that the recent strikes have permanently crippled Iran's nuclear programme. Many analysts believe any setbacks will last only months, not years, and that Iran will simply shift operations deeper underground. Roadblocks to dominance The unresolved Palestinian question remains the greatest obstacle to expanding the Abraham Accords and achieving regional peace. Saudi Arabia has made its position clear: it demands an unambiguous commitment to establishing a Palestinian state. Yet the Netanyahu government - shaped by ultra-right forces - prioritises military dominance over meaningful negotiations, particularly in Gaza and the West Bank. Israel's military assault on Gaza has inflamed Arab public opinion, making normalisation politically costly for Gulf leaders. Without a clear post-war vision for Gaza and a comprehensive ceasefire, Israeli dominance is unsustainable. Follow Middle East Eye's live coverage of the Israel-Palestine war Regional actors, especially in the Gulf, fear appearing complicit with a state widely viewed as violating Arab rights. Israel's prolonged war in Gaza and lack of a political roadmap have tarnished its global image, leading to growing international condemnation and even weakening support from traditional allies like the EU (though it declined to take any action). Israel's military assault on Gaza has inflamed Arab public opinion, making normalisation politically costly for Gulf leaders The erosion of diplomatic support for Israel - alongside the continued refusal to hold it accountable for its war crimes - has only furthered its isolation, undermining any bid for genuine regional leadership. Meanwhile, Israeli national security doctrine under Prime Minister Benjamin Netanyahu relies on military superiority as the only guarantee of peace. But even claimed military "victories" come at staggering human and economic costs - both for Palestinians and for Israelis. Even if external military actions temporarily consolidate internal support - as seen in Iran - they often fail to trigger regime change or long-term stability. Decades of foreign interventions have shown that externally imposed political transitions are more likely to produce chaos than lasting peace. Regional and internal pressures have compounded the challenges facing Israel's hegemonic ambitions. Gulf states, wary of Iranian collapse, fear the resulting chaos, humanitarian crisis, refugee flows and nuclear proliferation. Domestically, Netanyahu faces mounting pressure amid public frustration over his failure to secure a full ceasefire in Gaza or release all hostages - exposing internal fractures that challenge any coherent long-term strategy. Crucially, Israel has not established a legitimate Palestinian governing authority to assume control of Gaza, nor has it succeeded in imposing external or co-opted leadership. The result is chaos and the emergence of new resistance movements - mirroring US failures in Iraq and Afghanistan. Regional defiance Saudi Arabia has remained unwilling to embrace Israeli ambitions, insisting that any normalisation must be preceded by a concrete commitment to establishing a Palestinian state. However, Israel's aggression has made further agreements politically untenable. Gulf states must act to avoid Israel's war on Iran spiralling into chaos Hadi Kahalzadeh Read More » Some Gulf countries are reassessing their approach to Israel, questioning whether its actions foster stability or provoke further conflict. Many now prefer a long-term weakening of both Iran and Israel, rather than a decisive victory for either, to reduce threats to their own regimes. Saudi and Emirati strategies of hedging - including outreach to Iran - suggest a desire to avoid taking sides in regional conflicts, reducing their willingness to join an anti-Iran alliance led by Israel. Turkey, too, is unlikely to accept Israeli regional dominance. What was once a "golden age" of cooperation in the 1990s has devolved into mutual suspicion. Turkish leaders have grown increasingly vocal in their condemnation of Israel's actions, particularly in Gaza, and Ankara views Israel's deepening alliances with Greece and Cyprus as a threat. Turkey continues to build its own military and missile capabilities and asserts regional influence in Syria. It also positions itself as a potential mediator in Israeli-Iranian tensions - an indication of its desire to act independently. A fragile vision Trump's military campaign may have weakened Iran's nuclear ambitions and its regional allies, but long-term regional stability remains elusive. The current "peace" is more accurately described as a fragile truce than a durable shift. At its core, Israeli military superiority has failed to deliver political solutions. Without addressing the Palestinian question, stabilising Gaza, and navigating complex regional rivalries, lasting peace is impossible. Even if armed groups are temporarily subdued, the region's capacity to generate new forms of resistance endures Even if armed resistance groups such as Hezbollah or Hamas are temporarily subdued, the region's capacity to generate new forms of resistance endures. Israel may maintain its military edge, but it will continue to struggle for legitimacy and leadership in the Middle East. As violations of international law by the US and Israel mount, the message appears clear: "Only the weak follow the rules." Such a precedent erodes collective security and undermines any meaningful regional consensus. Real, enduring peace will not come through dominance alone - it demands diplomacy, justice, and the courage to confront the root causes of conflict. The views expressed in this article belong to the author and do not necessarily reflect the editorial policy of Middle East Eye.