Palestinian contractors from Gaza, who were scheduled to reach the Israeli-controlled side of the strip in order to work on rebuilding Rafah, were blocked by Hamas last week, KAN reported on Tuesday.
The passage was facilitated by the IDF and the US-led Civil-Military Coordination Center as part of initial efforts to build a new Palestinian city in Rafah, often referred to as "Emirates City" in diplomatic circles.
The project was named after being funded by the United Arab Emirates, which has pledged approximately $1.2 billion towards Gaza's recovery. This specific project is aimed at housing tens of thousands of displaced Gazans.
However, the contractors were threatened at gunpoint by Hamas militants, who refused to permit them passage to the site. The contractors, who came from various parts of the Strip, were forcibly turned away.
Hamas views the UAE-funded project not just as aid, but as a political maneuver to replace its authority, having previously labeled the board as "international guardianship."
'We are approaching a resumption of fighting in Gaza'
This marks the first time Hamas has actively blocked activity approved by Trump's Board of Peace, which is attempting to move forward with rebuilding the strip and reestablishing civilian governance.
This is seen as proof that Hamas is taking advantage of the ceasefire to strengthen its own position. They have refused to agree to disarm or transfer their power to civilian governance.
Israeli officials have reportedly warned the US that fighting in Gaza could be resumed if the situation persists.
The incident underscores ongoing frictions with Hamas, potentially signaling a breakdown of the status quo and current de-escalation efforts.
Clause 13 of the Trump Plan mandates that any interference with reconstruction by armed factions is a violation of the ceasefire, effectively giving Israel the legal "green light" to restart operations.