Gaza reconstruction amid political tensions

In the months after the October 7, 2023 war, Gaza was reduced to a landscape of rubble. By mid‑2026 engineering teams had catalogued the destruction of almost all underground tunnels, including 362 smuggling tunnels in Rafah, and were planning their demolition. Hamas was reported to be negotiating the surrender of heavy weapons, tunnel maps and production sites to a multinational committee, while a multinational force was slated to act as a buffer and oversee the collection of arms before any Israeli withdrawal.

A joint Oxfam, Palestine Economic Policy Research Institute and Palestine Trade Centre report released in July 2026 estimated that rebuilding Gaza will cost about $71.4 billion over the next decade, with $26.3 billion required in the first 18 months to restore basic services, critical infrastructure and support economic recovery. The analysis reiterated the human toll—at least 73,000 Palestinians killed, 173,000 injured and 1.9 million displaced—and warned that reconstruction cannot succeed without direct Palestinian participation.

Later in July, the UN Middle East peace envoy told the Security Council that humanitarian conditions have only marginally improved and that aid alone will not sustain reconstruction without a political process. Israeli Defence Minister Israel Katz estimated that roughly 70 % of Gaza has been demolished, citing neighborhoods such as Jabalia and Shuja’iyya, and warned Turkey against further interference. The statements underline the scale of physical damage and the deepening geopolitical tensions surrounding Gaza’s reconstruction.

The assessment highlighted the destruction of nearly 372,000 housing units, 66 million tonnes of rubble, and the need for long‑term rehabilitation for more than 50,000 people. It warned that externally driven projects risk becoming a form of control over land and lives unless led by Palestinians.