In a significant move, Israel officially informed the United Nations on Monday that it was cancelling the long-standing agreement overseeing its relationship with the UN Relief and Works Agency for Palestine Refugees (UNRWA). The Israeli Foreign Ministry confirmed the decision, which ends a framework in place since 1967 and follows recent legislation from Israel’s parliament that prohibits UNRWA operations within the country and limits Israeli authorities from collaborating with the organization.

The agency, established after the 1948 Arab-Israeli war, has faced consistent criticism from Israel, which claims it harbours anti-Israel bias and sustains the ongoing conflict by keeping Palestinians in refugee status. The organisation provides essential aid and educational services to millions of Palestinians in the occupied West Bank and Gaza Strip, where Israel maintains that UNRWA’s activities perpetuate tension. Recently, Israeli authorities have alleged Hamas infiltration within UNRWA, with some staff accused of participating in the October 7 attack on Israel that escalated the ongoing Gaza conflict.

Israel's U.N. Ambassador, Danny Danon, issued a statement underscoring Israel’s dissatisfaction with UNRWA, saying, “Despite the overwhelming evidence we submitted to the U.N. highlighting how Hamas infiltrated UNRWA, the U.N. did nothing to address this reality.”

While the new law does not prohibit UNRWA’s work in the West Bank and Gaza, both areas under Israeli occupation but regarded internationally as outside Israel’s sovereign territory the change is expected to severely impact the organisation’s ability to operate effectively. Israel’s move has raised significant concerns among the United Nations and Western allies, who worry it could worsen Gaza's already critical humanitarian situation amid ongoing conflict between Israel and Hamas.

In response, Israel's Foreign Ministry announced plans to broaden the scope of activities by other international organisations in the area, aiming to phase out cooperation with UNRWA and replace it with alternative services.

This development underscores the growing rift between Israel and UNRWA, which could have lasting consequences on aid and stability in the region.