The halt to commercial shipments, including fruit and winter clothing, cuts off a key source of critical supplies.

Israeli authorities say no commercial goods have entered Gaza for two days, citing what they claim is a tax dispute between local merchants and Hamas.

COGAT, or the Coordinator of Government Activities in the Territories, the Israeli military body that “oversees humanitarian affairs” in Gaza, announced the halt on Wednesday.

COGAT claimed that local merchants “made the decision in response to a 10,000 shekel ($3,220) fee imposed by Hamas on each truck entering Gaza” as well as a demand for 30 percent of all sales in Gaza to be carried out in cash.

This decision is expected to impact a crucial source of food and goods for the 2.1 million people in the Strip, who are completely reliant on Israel’s border crossings in a territory that is still suffering from famine.

Gaza’s government media office refuted the claims on Thursday and condemned the “blatant disinformation campaign and false statement”.

The media office instead said it was an attempt “to hold the government apparatus in Gaza responsible for the disruption of truck entry” and that the fee was a voluntary payment to a fund providing aid for those in need, such as widows and orphans.

It also said that cash payments were encouraged due to what it described as an acute cash shortage in the war-torn territory, but were never a mandatory requirement.

An already dire humanitarian crisis

The halt to commercial shipments, including fruit and winter clothing, cuts off a key source of food and other critical supplies as fears mount ahead of the encroaching winter.

Aid groups generally bring in staples such as flour, while merchants import more perishable foods like fruits and meat, according to data released earlier this year by COGAT.

The suspension is raising fears about affordability, with humanitarian workers saying a combination of aid and a robust commercial market is needed to keep prices under control.

“The humanitarian sector on its own cannot meet the needs of all the people,” said Shaina Low, a spokesperson for the Norwegian Refugee Council. “The markets need to be functioning.”

Local merchants step in

The head of Gaza’s private truckers union, Nahed Sheheiber, denied the Israeli narrative, saying: “The Israeli coordinator is claiming that Gaza’s merchants are responsible, but the truth is that the Israelis are the ones who imposed the restrictions.”

Following COGAT’s announcement, Sheheiber’s union met with Gaza’s Ministry of Economy to express concern and say Israel was citing fees levied by the ministry as a pretext to cut off commercial goods.

A global hunger monitor in July warned that more than two-thirds of people in Gaza could face acute hunger by the year-end.

Israel is obliged under a US-mediated agreement to allow a minimum of 600 trucks carrying humanitarian aid to enter Gaza each day.

Diplomats say that far fewer than 600 trucks normally enter Gaza each day. Sheheiber said the figure was closer to 300, with two-thirds carrying commercial goods.