Fuel shortages, funding shortfalls push Gaza's health sector to brink of collapse

Gaza's health sector is under growing pressure as shortages of fuel and maintenance supplies disrupt medical services, threatening essential care for patients.

In Gaza City, the Al-Rantisi Children's Hospital is operating at minimum capacity, with some departments shut down to conserve electricity for critical care.

"At the moment, we are unable to operate all the ventilators or reopen the intensive care unit at Al-Rantisi Hospital with its staff and equipment. Last night, unfortunately, a one-and-a-half-month-old baby died because intensive care was unavailable and we were unable to provide the medical care the baby needed," said Sharif Matar, head of the Pediatrics Department of the hospital.

Generators are now the hospitals' main source of electricity in Gaza. However, shortages of diesel, oil and spare parts are making it difficult to keep them running.

"We cannot operate the generators around the clock. The hospital's operating department is working for limited hours because of the shortage of diesel. Previously, electricity from the power company supplemented the generators, but today, unfortunately, the generators are operating for longer hours than they are designed to handle, and the same applies to the generator oil," said Hatem Al-Suwairki, a maintenance officer of the Al-Nasr Medical Complex.

The limited electricity available is being prioritized for critical departments at hospitals, including neonatal care, where vital medical equipment must remain in operation.

"Electricity is absolutely essential for the children. The entire neonatal unit here depends on electricity. The power cannot be cut off from these children, even for a minute, because of the medical monitoring equipment. The children also need nebulizer treatments to help them breathe, as well as lighting and fans. That is why electricity is absolutely essential for hospitals in Gaza," said Faten Abu Jrad, grandmother of a sick child.

According to Gaza's health authorities, the World Health Organization diesel fuel deliveries starting Sept 19 to more than 20 hospitals and health centers due to a critical funding shortfall.

Fuel shortages, funding shortfalls push Gaza's health sector to brink of collapse

The yield on the 30-year U.S. Treasury bond rose sharply intraday on Tuesday, hitting 5.623 percent at one point, its highest level since June 2002, driven by worries over rising inflation and the outlook on further Federal Reserve rate hikes.

The yield on the U.S. 10-year Treasury, closely linked to rates for residential mortgages, auto loans and credit cards, climbed to an intraday high of 5.297 percent.

Meanwhile, the yield on the 2-year Treasury, which is highly correlated with the federal funds rate, traded in a narrow range.

JoAnne Bianco, an investment strategist from BondBloxx Investment Management Corporation, said investors remain highly focused on inflation and are increasingly concerned over the U.S. fiscal deficit and the scale of Treasury issuance.

These factors have led investors to demand a higher-term premium for U.S. Treasuries, pushing bond yields higher, she said.

John C. Williams, president of the Federal Reserve Bank of New York, on Tuesday played down the prospect of another Fed rate hike in October.

He said that following the policy action that the Fed had taken at its September meeting, there is "no need for urgency" for further action.

He said that another rate hike in late 2026 may be appropriate to help bring inflation back to target.

A report released by the Conference Board on Tuesday showed that the U.S. consumers' average and median 12-month inflation expectations rose 0.3 percentage points in September to 6.1 percent and 5.1 percent, respectively.

US 30-year Treasury bond yield hits highest level since June 2002