“Israel shares a convoluted and ambivalent relationship with UNRWA [United Nations Relief and Works Agency for Palestinian Refugees in the Near East],” a civil administration source told Al-Monitor, speaking on the condition of anonymity. “On one hand, Israel views UNRWA as an entity that serves to camouflage Hamas terror acts, since Hamas exploits UNRWA facilities for its own purposes. On the other hand, people in Israel understand that without the agency, the entire Strip would become a humanitarian disaster site.”

The UNRWA dilemma has haunted Israel since Hamas took control of Gaza in 2007. The main question is how does one deal with an organization that averts a total collapse of the Gaza Strip, thus allowing Hamas to direct its resources toward terrorism instead of toward humanitarian aid for residents?

The dilemma grew more pointed after Nikki Haley, US ambassador to the United Nations, issued a warning, asserting that the Donald Trump administration will halt monetary aid to UNRWA. This warning came after President Mahmoud Abbas’ refused to conduct negotiations with Israel under US mediation after Trump recognized Jerusalem as the capital of Israel.

Israel is “fed up” with the relief agency, mainly because of what is viewed as UNRWA’s tacit acceptance of the way Hamas exploits UNRWA institutions. Maj. Gen. Yoav Mordechai, head of Coordination of Government Activities in the Territories, has often criticized UNRWA workers. He claims that they steal raw materials and other essential resources that Israel allows to be brought into Gaza for humanitarian purposes. Also, Mordechai says, UNRWA staff turn their heads while Hamas digs tunnels under schools operated by the agency. In June 2017, Mordechai disclosed that Hamas had dug a tunnel under a school in northern Gaza. He also accused Hamas of using pupils as human shields and upbraided UNRWA leaders and staff for not preventing the digging of tunnels despite the danger it poses to the schoolchildren.