A report by the Washington Post on Monday detailed that the US has been working to convince "Israel" to keep the Palestinian Authority's economy afloat so that it may take over control of Gaza once the war comes to an end. 

In the aftermath of the October 7 operation, "Israel" blocked $140 million in Palestinian tax money for what it described as "security reasons". The consequences of this are that the financially strained Palestinian Authority is incapable of disbursing salaries to its employees, including soldiers responsible for guarding President Mahmoud Abbas' compound in Ramallah, the report states.

In recent weeks, US officials have been actively visiting the walled compound as the White House advocates for the establishment of a new Palestinian administration and the training of its forces. However, "Israel's" extremist finance minister has unequivocally declared that "not one shekel" will be disbursed to the Palestinian Authority.

Reports are indicating that Palestinians perceive Abbas' administration as increasingly aligning with "Israel's" interests. As a result, the popularity of Palestinian Resistance Hamas has reportedly increased, while support for Abbas has declined. Some officials in Ramallah express concerns that there might be little left to govern once the Israeli aggression in Gaza concludes.

Read more: Biden admin admits to plans for PA to rule Gaza post-war

Deputy Prime Minister of the Palestinian Authority Nabil Abu Rudeineh told the newspaper that even if the Palestinian government agreed to Washington's "day after" plan, it would not be put into action due to "Israel's" intent to undermine the Palestinian Authority. Other Palestinian officials, questioned by WashPo, expressed concerns about the absence of a clear "political horizon" for the attainment of Palestinian statehood.

Sabri Saidam, an adviser to Abbas and a member of the central committee for the Fatah party, conveyed to the newspaper that not everyone in Ramallah was satisfied with the US playing a role in determining the future of the Palestinian Authority.

"It's always this colonizing mentality, whereby, 'We decide your leadership, we are the ones basically designing your strategy for the day after, we tell you how to live, we tell you how to breathe, and we tell you how to run your land,'" he said.

"Israel's" economy hampered by regime's policy

On December 23, the Wall Street Journal reported that Israeli businesses were suffering heavy losses as a result of the regime's decision to suspend Palestinian work permits since the start of the war on Gaza. 

The Israeli regime claimed that the measure of imposing restrictions on Palestinian workers from entering Israeli-occupied Palestinian lands since 1948 was introduced as a means to safeguard national security as a result of the October 7 operation.

Elsewhere in the piece, writer Omar Abdel-Baqui says that the Israeli war on Gaza and the West Bank has had significant economic implications and that the decision to restrict over 100,000 Palestinian workers from entering the Israeli-administered territories has affected the regime's labor market.

Moreover, the mobilization of about 400,000 Israeli reservists and the relocation of approximately 250,000 Israelis due to security concerns have disrupted regular work routines. The absence of workers has further cost the Israeli economy an estimated $3.6 billion by mid-November, impacting some sectors suffering serious losses, including the tech industry.

The war is forecasted to lead to the closure of around 30,000 small- and medium-sized Israeli businesses, the WSJ report says, adding that the West Bank's economy has suffered a heavy 37% decline in production, resulting in a $500 million monthly loss.

In sum, the suspension of Palestinian work permits has contributed to an economic crisis in the West Bank, leading to the loss of approximately 208,000 jobs.

Read more: Israeli economy to shrink 2% as workforce is displaced, drafted