GENEVA

UN human rights experts on Monday warned of a severe economic emergency in the occupied Palestinian territory, saying Israel's financial restrictions and military actions have devastated livelihoods and violated international law.

"Economic life in Gaza has been decimated by sheer physical destruction, blockade and siege, and repeated forced displacement," the experts said in a statement. They noted that unemployment has surged above 80%, GDP has collapsed, and famine has been declared.

The experts described a liquidity crisis in Gaza, with banks and ATMs destroyed and Israel blocking the inflow of new currency. Cash scarcity has driven soaring prices; cooking oil rose by 1,200% and flour by 5,000% by mid-2025. Humanitarian workers reportedly lose nearly 40% of their salaries to access wages.

"The disproportionate civilian harm caused by Israel’s blockade and siege violates international humanitarian law and the economic and social rights of Palestinians," the experts said.

They also expressed concern about Israel's diversion of Palestinian tax revenues, the suspension of UNRWA funding, and the freezing of work permits for 100,000 Palestinians, which once generated a quarter of gross national income.

"Israel has threatened not to renew the annual waiver of terrorist financing laws that allows Israeli banks to process transactions with Palestinian banks in November 2025," the experts warned, saying this could cut Palestinians off from the global financial system.

"The international community must act urgently to compel Israel to stop violating fundamental rules of international law, respect the economic rights of the Palestinian people, alleviate the humanitarian crisis, and prevent financial collapse," they said.