The Overlook26 Apr 2025

Hamas Bankrupt, End of War Near?

In 2023, Hamas was emboldened by the weak foreign policy of the Biden administration, which released billions of dollars in frozen assets to the Iranian regime, directly funding Hamas in the Israel-Gaza war. The Trump administration signals a stark foreign policy shift; the U.S. has returned to a policy of intolerance for terrorism and Islamism. All of Hamas' key funding channels have been disrupted: Israel has cut off aid that Hamas would sell to their starving population, Trump has cut off UNRWA funding and reimposed a maximum pressure campaign against the Iranian regime, which has significantly cut money flow to Gaza. But we need to remember this was never a war Hamas could win. Hamas was always the weaker actor surviving on the pressure of an international anti-Israel campaign. Hamas going bankrupt is downstream of strong foreign policy. Despite the reality that Hamas and Iran are financially diminished, neither entity should be underestimated. As the U.S. presses for a resolution favorable to Israel and Hamas weakens due to financial constraints, the West should not forget Hamas is not just an organization but an ideology— the latter of which will take a lot more than defunding to eliminate. It is the economic grievances and disenfranchised Gazan youth that will pose the most significant difficulty in a long-term solution to this war.

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