Iran has agreed to provide the Hamas-led Palestinian Authority with enough money to make up for any cuts in foreign aid, a senior Hamas official has confirmed.
Palestinian refugees receive food aid from the European Union distributed by the World Food Program in Gaza City
But Hamas spokesmen could not confirm a report in the London-based al-Hayatnewspaper that Tehran promised the group's leader, Khaled Meshaal, about $250 million to compensate for the loss of US and European aid.
Al-Hayatquoted Palestinian sources in Damascus, where Meshaal lives in exile. Meshaal visited Tehran and other regional powers earlier this month in search of financial support for the cash-strapped Palestinian Authority.
Hamas's spokesman in the West Bank, said Iran told Meshaal during his visit that it was "prepared to cover the entire deficit in the Palestinian budget, and continuously".
Palestinians are dependent on foreign aid totalling more than $1 billion a year. It is unclear how much of that money would be withheld by international donors once Hamas, which won the January 25th Palestinian parliamentary election and is sworn to Israel's destruction, forms a government.
US and Israeli officials are concerned that Tehran, which also refuses to recognise Israel, will gain influence over a Hamas-led government, hampering efforts to reach a Middle East peace settlement.
Yesterday the European Union released substantial aid to the Palestinians to stave off a looming financial crisis despite the Hamas victory.
The package totals €120 million, including €40 million to pay electricity bills and €64 million channelled through the UN Relief and Works Agency for Palestinian refugees, European External Relations Commissioner Benita Ferrero-Waldner said.