‘We are starving’: Palestinians besieged by settlers in West Bank homes run out of food

The West Bank economy is teetering on the brink of a full-blown crisis, according to a recent report from The New York Times. The situation has worsened following Israel's imposition of restrictions on labor, government funds, banking, trade, and movement in the territory. Since the October 7 massacre in 2023, Israel has barred over 100,000 Palestinian laborers from entering the West Bank, citing heightened security concerns.

This has led to a sharp decline in revenue for the Palestinian Authority, which administers segments of the West Bank.

Unemployment in the West Bank has skyrocketed to 28 percent, more than double its pre-conflict rate, as per the Palestinian Central Bureau of Statistics. Moreover, in May 2025, Israel began seizing significant monthly import taxes—worth hundreds of millions of dollars—intended for the Palestinian Authority. These taxes account for roughly two-thirds of the West Bank's 2026 government budget, projected to be around $6 billion.

To cope with the budget cuts, the Palestinian Authority has had to slash the salaries of 140,000 civil servants and security personnel, shorten the school week to three days, and accumulate billions of dollars in debt. Local resident Arafat Halabi, a traffic police officer in Nablus, shared with the NYT how his monthly salary of about $1,500 has been reduced by half.

He recounted having to make drastic adjustments to his lifestyle, including eating meat only on Fridays, relying on public transportation, and postponing the purchase of new clothes for his children.

The economic turmoil has also had a profound impact on healthcare. Pharmacies frequently run out of medications due to reduced government funding, clinics operate fewer days a week, and hospitals operate with diminished medical staff. Ibtisam Hammad, a breast cancer patient from the West Bank, recounted her experience with the strain on healthcare facilities. She noted that only three out of six prescribed medications were available at her pharmacy.

Israel has also implemented additional roadblocks to augment security measures following the October 7 tragedy and the escalation of violence in the West Bank. Palestinian sources to the NYT confirmed these roadblocks, which are severely hindering the movement of goods. However, the Israeli foreign ministry denies these allegations, accusing the Palestinian Authority of diverting attention from its alleged support for terrorism and its failure to implement reforms.

The Palestinian Monetary Authority has warned that Israel's economic restrictions are pushing the West Bank toward a "full crisis." Israeli banks have imposed limitations on the shekels Palestinian banks can transfer to Israeli banks, restricting Palestinian merchants' ability to purchase goods from Israel and other nations. Currently, approximately $5.7 billion sits idle in West Bank bank vaults, unable to meet market demands.

Palestinian banking executives are concerned that Israel's restrictions could lead to Israeli banks cutting ties, potentially resulting in lawsuits over money laundering or terrorist financing.