Rising Tensions in Gaza: Price Increases Amidst Uncertain Peace

Sat Mar 28 2026 20:52:58 GMT+0000 (Coordinated Universal Time)

As the focus shifts to Iran amid ongoing conflict, Gazans face rising prices and supply shortages, deepening doubts over lasting peace prospects in the region.

Six months after a ceasefire, Gaza still struggles with shortages and rising commodity prices as merchants cite disrupted supply lines due to escalating conflicts. While international attention has turned to the Iran war, local residents voice frustration over neglect and worsening living conditions. Recent developments involving Hamas and the U.S.-led Board of Peace further complicate the fragile situation, with doubts hanging over the potential for recovery and reconstruction in the beleaguered territory.

Nearly six months after a fragile ceasefire came into force in Gaza, Palestinians in this war-torn territory are still struggling.

In the markets, there are again shortages of some goods and rising prices – with merchants saying supplies brought in from Israel have been disrupted by the new war in the region.

What does the war between Iran and Israel have to do with us? Prices have doubled here. Goods aren't coming in like before, says a shopper, Hassan Faqawi, despairingly. In this situation, the whole world is focused on Iran, America and Israel, and Gaza is forgotten.

While world attention has turned to the Iran war, there is increasing uncertainty about what happens in Gaza at a crucial stage in President Trump's 20-point peace plan, which halted the fighting in October last year.

In the past week at the UN Security Council, the High Representative for Gaza on the US-led Board of Peace, Nickolay Mladenov, laid out a detailed plan for Palestinian armed groups to decommission their weapons - linking compliance to the start of reconstruction.

However, a Palestinian official familiar with Hamas affairs informed the BBC that the group is likely to reject these proposals, increasing the risk of a return to a full-force military offensive with Israel's prime minister demanding that Hamas disarm. The ongoing airstrikes have resulted in numerous deaths, deepening the woes of the Gaza population.

Gaza still grappling with food shortages and ongoing strikes despite a ceasefire.

Heavy rain in recent weeks has worsened the situation, causing sewage systems to overflow in crowded tent camps, further complicating life for residents. Despite promises of full aid and rehabilitation, reconstruction materials remain barred from entry by Israel, citing concerns they could be used by Hamas for military purposes.

As Gazans voice frustration over the lack of control amidst rising governance from Hamas, analysts speculate on the effectiveness of the international peace efforts underway. While a semblance of peace had emerged post-ceasefire, setbacks and systemic issues indicate that any hope for significant change remains cautious at best.