Hussein al-Sheikh, Secretary-General of the Executive Committee of the Palestine Liberation Organization, has urged the countries that have announced a cessation of support for UNRWA to immediately reverse their decision, which he claims carries significant risks, both politically and in terms of relief. Al-Sheikh emphasized the urgency of support for UNRWA in the current climate of continuous aggression against the Palestinian people.

Following Israeli allegations that several UNRWA employees participated in an attack on October 7th in the Gaza perimeter, the United States, Canada, Australia, Italy, and the United Kingdom declared a suspension of funding for UNRWA.

After the U.S. announced the cessation of its aid to the agency on Friday, based on these Israeli claims, Canadian Minister of International Development Ahmed Hussen stated on Saturday that Canada will temporarily pause its aid to UNRWA until the completion of a thorough United Nations investigation. Australia similarly suspended its financial contributions, joined by Italy, whose Foreign Minister Antonio Tajani also confirmed the suspension of funding. The United Kingdom followed suit on Saturday, expressing concerns over allegations regarding UNRWA employees' involvement in the October 7th attack on Israel.

The decisions of these Western countries came after Israel presented information on the alleged involvement of UNRWA employees in an operation by Hamas, known as "Al Aqsa Flood," which occurred on October 7th and resulted in the deaths of 1200 Israelis and the capture of approximately 240 others in the Gaza Strip.

A senior Israeli official relayed to Axios news that intelligence provided by "Shin Bet" security agency and the Israeli military pointed to the involvement of UNRWA employees, as well as the use of the agency's vehicles and facilities in the October 7th attack. The official stressed that strong and confirmed intelligence information emerged from the interrogation of militants captured during the attack.

The Palestinian Foreign Ministry views the unfolding events as part of a deliberate scheme. On Saturday, the Ministry strongly condemned the systematic incitement campaign employed by the Israeli government against UNRWA, denigrating it as biased judgments and entrenched hostility that have been exposed over previous years.

The Palestinian Foreign Ministry expressed deep surprise at the actions taken by some countries before the conclusion of the UN investigations and demanded their immediate reversal in accordance with the law and established legal procedures.

The Ministry also accused Israel, the occupying power, of endeavoring by all means to halt UNRWA's operations in a bid to obliterate the refugee issue and their inherent right to return, as per United Nations resolutions.

Israeli officials, including Defense Minister Yoav Gallant, have launched a broad attack on UNRWA following the exposure of the allegations involving its employees and have indicated that these revelations are a crucial step towards holding the UN agency accountable.

Israeli Foreign Minister Yisrael Katz stated that UNRWA must pay for its actions, emphasizing that his ministry is working to ensure that UNRWA will not be present in Gaza post-conflict.

Katz accused the agency of acting as a civilian arm of Hamas and called on the United Nations to take punitive steps against the agency's leaders.

Hamas, meanwhile, defended and simultaneously attacked UNRWA, condemning what it referred to as an Israeli-led incitement campaign against international institutions aiding their people facing genocide. At the same time, Hamas also denounced UNRWA's statement announcing the termination of contracts for several of its employees in Gaza.

Hamas and other factions have demanded that UNRWA immediately retract the decision and adhere to the mandate granted by the international community, asserting employees' right to seek judicial recourse to "stop the injustice" they face. They also called on the agency to promptly resume operations across the Strip and to resist the pressures of occupation while fulfilling its responsibilities toward thousands of refugees suffering due to a lack of water, food, and medicine, especially in the Strip's northern regions.

Hamas expressed dissatisfaction with the statement issued by UNRWA's Commissioner-General, Philippe Lazzarini, especially given that the termination of employees' contracts was based on information from the Israeli occupation, deeming his statement to confirm allegations without the requirements of investigation being met. Furthermore, Hamas criticized Lazzarini's description of "resistance as terrorism or heinous acts," affirming that it is not within UNRWA's role to announce political positions regarding the conflict. Hamas added that UNRWA has not issued explicit statements or positions accusing the occupation of terrorism despite the Palestinians in the Strip undergoing genocide, the killing of 150 UNRWA employees, and the bombardment of its facilities, including the recent targeting of the Khan Younis vocational center designated as a shelter for thousands.

Hamas accused UNRWA of capitulating to "blackmail by countries supporting the occupation under the pretext of continued financial support."

UNRWA had declared on Friday the termination of contracts for "several employees" whom the Israeli authorities accuse of involvement in the October 7th events.

Commissioner-General Philippe Lazzarini said that the decision was taken "to protect the agency's ability to deliver humanitarian aid," adding, "Every employee involved in terrorist acts must be held accountable, including through judicial prosecutions."

While UNRWA's statement did not specify the number of dismissed employees, the U.S. statement on the suspension of aid to the agency remarked that 12 employees "may be implicated."

The funding suspensions come at a critical time for UNRWA, which is suffering from a severe funding shortfall and facing an unprecedented and growing demand in Gaza, where refugees make up two-thirds of the population.

In 2022, the United States was the largest bilateral donor to the agency, contributing over $340 million, according to UNRWA's website.

Israel has long advocated for halting funding to the agency and worked closely with former U.S. President Donald Trump to shut it down, branding it "corrupt" and claiming it perpetuated the conflict by granting refugee status not only to the first generation but also to their descendants.