Tunnel closure costs $230m a month

Egypt's closure of Gaza tunnels has caused monthly losses of $230 million (170 million euros) to its economy, a Hamas official said Sunday.

The "closure of the tunnels caused heavy losses to the industry, commerce, agriculture, transport and construction sectors" of around $230 million monthly, said Hatem Oweida, deputy economy minister for Hamas.

Essential materials were for years transferred from Egypt into Gaza through tunnels, bypassing Israel's blockade, but the Egyptian army recently destroyed many of them.

Oweida said that the coastal Palestinian territory had relied on the tunnels to meet at least 40 percent of its construction supplies and raw material needs.

Gaza's unemployment rate would hit 43 percent if official border crossings remained shut and the tunnels were destroyed, Oweida warned.

He added that "public revenues saw a decline after the closure of the tunnels and the tightening of the siege in the second half of 2013," which he said would hit Hamas' employment and temporary work programs, according to AFP.