How is Hamas financed?

After Hamas carried out a deadly attack on Israel that led to a serious escalation of tensions in an already inflamed region of the Middle East, the US imposed new sanctions on the organization aimed at cutting off its funding.

Marketing

The sanctions target nine individuals and one entity, Sky News reports, all based in the Middle East and Africa, and blocking access to funds held in the US.

But who finances Hamas?

The Palestinian militant group has a complex financial network that it uses to channel aid from charities and private donors, as well as from friendly countries such as Iran and Qatar.

Money flows through their network of underground tunnels or using cryptocurrencies to circumvent international sanctions imposed on them after being designated a terrorist organization by the US and EU.

The US State Department said it has evidence that Iran gives up to $100 million a year to Palestinian groups, including Hamas.

Iran has denied helping Hamas attack Israel, which it does not recognize, but welcomed the results of the attack. Qatar has also sent hundreds of millions of dollars to Gaza since 2014.

Hamas also raises revenue through taxes on salaries, aid, imports and other economic activities within Gaza.

Israeli police announced that they recently worked with the United Kingdom to freeze a bank account linked to fundraising for Hamas, and also successfully froze cryptocurrency accounts used by the group to raise funds.

Research firm TRM Labs said Israeli authorities have seized "tens of millions of dollars" in cryptocurrencies from addresses linked to Hamas in recent years.