In a dramatic escalation that’s reverberated across the occupied West Bank, Israeli forces launched a rare daytime raid deep into the heart of Ramallah on August 26, 2025, targeting what they described as a currency exchange suspected of funneling money to Hamas. The operation, which unfolded just a few hundred meters from the Palestinian Authority’s headquarters, left dozens injured, financial institutions reeling, and political tensions at a boiling point.
According to reports from multiple outlets, including The National and the Palestinian NGO Network (PNGO), Israeli troops—many disguised in civilian vehicles—stormed central Ramallah with snipers perched on rooftops, firing live ammunition, rubber bullets, and tear gas. The Palestinian Red Crescent documented at least 58 injuries, among them children, women, and the elderly. Eight people were wounded by live fire, including a 13-year-old boy, while 14 suffered rubber bullet injuries—one of them a 71-year-old man. Tear gas suffocation affected 31 people, and five were injured by shrapnel. Journalists were not spared: Associated Press photojournalist Imad Saeed and others were reportedly assaulted during the chaos.
The raid specifically targeted a currency exchange in the bustling city center. Israeli police later announced the confiscation of approximately 1.5 million shekels—about $447,000—in what they called “terror funds.” Large amounts of foreign and local currencies, including US dollars, euros, and Jordanian dinars, were seized. Nine individuals were arrested and taken for investigation, accused by Israeli authorities of involvement in illicit financial transfers to Hamas. The Israeli military described the business as “the last exchange bank in the West Bank that launders terror funds,” according to The Jerusalem Post.
Palestinian officials and financial leaders, however, sharply contested these claims. The PNGO and the Palestinian Monetary Authority emphasized that currency exchanges are tightly regulated, with extensive records and oversight. “Of course, a money changer could be doing something wrong, but to tackle the problem properly, you don’t destabilize the market. You don’t raid violently, injuring and killing people,” Palestinian businessman and economist Samir Hulileh told The National. He stressed that, under the Oslo Accords, mechanisms for addressing financial crime have long involved both Palestinian and Israeli authorities, with international oversight. The use of military force, Hulileh argued, “is a way to frighten people and make the economy and all of the West Bank tremble.”
For many Palestinians, the raid was not an isolated event but part of a broader pattern. The PNGO characterized the incursion, alongside the ongoing theft of Palestinian tax revenues, persistent siege and closure of towns, and destruction of agricultural resources, as “systematic acts of piracy” aimed at undermining the Palestinian economy and facilitating displacement. They pointed to the recent uprooting of tens of thousands of olive trees in Al-Mughayyir by Israeli settlers—a 72-hour operation—as further evidence of an agenda to uproot Palestinians from their homeland.
In its aftermath, Palestinian President Mahmoud Abbas’s office labeled the raid a “theft of funds” and an act of property destruction, calling on the United States to pressure Israel to halt such attacks. “The Israeli government is pushing the situation towards a major explosion aimed at forcing Palestinians from their land and displacing them,” the office said, as reported by the official Palestinian news agency Wafa. “The Palestinian people will neither leave nor relinquish their land and holy sites.”
Footage from the scene captured armored vehicles and troops patrolling Ramallah’s streets, with snipers visible on rooftops. Surveillance videos showed terrified civilians seeking shelter in shops as clashes erupted. Groups of mostly young men hurled stones at Israeli forces in a desperate response, while the sound of gunfire and stun grenades echoed through the crowded market. Shop owners and bystanders recounted being assaulted as soldiers threw sound grenades into stores, adding to the chaos.
The Israeli army’s operation in Ramallah is just the latest in a series of intensified military actions across the West Bank since the war with Hamas erupted in Gaza on October 7, 2023. The frequency and scale of these raids have surged: in July 2025 alone, Israeli forces carried out more than 1,300 raids on Palestinian towns and villages, nearly double the 673 conducted in July 2023. Many of these locations, including Ramallah, fall within Area A—territory that, according to the Oslo Accords, should be under exclusive Palestinian Authority administration. Yet, as the events in Ramallah demonstrate, military incursions continue with little regard for these agreements.
Earlier this year, Israel launched “Operation Iron Wall,” targeting refugee camps in the northern West Bank. The campaign resulted in dozens of deaths and the evacuation of three camps in Tulkarm and Jenin, displacing tens of thousands. Since the war began in Gaza, at least 972 Palestinians have been killed by Israeli forces or settlers in the West Bank, according to figures compiled by the French news agency from Palestinian Authority data.
The economic fallout from these operations has been severe. The Palestinian economy, already battered by the Gaza conflict, faces mounting pressure from frequent raids, closures, and the destruction of vital resources. PNGO described these actions as “systematic aggression against the basic necessities of life,” warning that they are designed to facilitate a displacement agenda and destabilize the Palestinian Authority.
The international community has been urged to intervene. PNGO called for protection for Palestinians and a reconsideration of trade agreements with Israel, describing the current situation as a “war of extermination against the Gaza Strip.” Palestinian leaders have also appealed to the US and other global actors to exert pressure on Israel to halt its aggressive tactics.
Amid the turmoil, ordinary Palestinians are left to pick up the pieces. Business owners in Ramallah now face the daunting task of recovering from smashed storefronts, confiscated assets, and a climate of fear. Many worry that the targeting of financial institutions will only deepen the economic crisis, making daily life even more precarious. As one local observer put it, “These actions not only help destroy the Palestinian economy, but continue to stamp the occupation’s control over every aspect of Palestinian life, even money.”
With tensions running high and violence escalating, the events in Ramallah serve as a stark reminder of the volatility gripping the West Bank. The raid’s aftermath has left many Palestinians bracing for further instability, as political leaders, financial experts, and international observers warn of the risk of an even wider explosion in the region.
As the dust settles in Ramallah, the city remains on edge, its residents caught between the daily realities of occupation and an uncertain future. The question now is whether the world will heed the calls for intervention—or whether the cycle of raids, reprisals, and resistance will continue unchecked.
