Jerusalem: Israel has formally notified the United Nations that it is canceling its longstanding agreement governing relations with UNRWA, the primary UN agency responsible for Palestinian refugees, a decision made public by Israel’s Foreign Ministry on Monday.

This move follows recent Israeli legislation prohibiting UNRWA's operations within Israel’s borders and halting cooperation with the agency, which provides essential aid and educational services to millions of Palestinians in the West Bank and Gaza.

UNRWA has faced longstanding criticism from Israel, which argues the agency perpetuates the conflict by maintaining the refugee status of Palestinians. Since the onset of the Gaza conflict last October, Israel has additionally alleged that Hamas has infiltrated UNRWA in Gaza, implicating some staff in the October 7 attack on Israel.

This new law has raised concerns among the UN and several of Israel's Western allies, who worry it could worsen the humanitarian crisis in Gaza, where Israel has been engaged in ongoing conflict with Hamas. The legislation doesn’t explicitly prohibit UNRWA’s activities in the West Bank and Gaza, which are outside Israel’s recognized borders but under occupation.

However, it is expected to significantly affect the agency’s ability to function in those territories. In response, Israel's Foreign Ministry stated that it will enhance the role of other international organizations and develop alternatives to UNRWA’s services.