The Associated Press reported this weekend that Hamas had cancelled the terror group’s previously scheduled 26th anniversary rally, with the terror group citing what the outlet described as ‘deep economic woes’ in the Gaza Strip territory that it rules:

The decision illustrated just how hard the Gaza economy has been hit since Egypt’s Islamist President Mohammed Morsi, Hamas’ main patron, was ousted in a July military coup. Morsi hails from the Muslim Brotherhood, Hamas’ parent movement, and moved to improve ties with the Islamic militant group.

The new military government has imposed tough border restrictions, including the destruction of smuggling tunnels that long sustained the Gaza economy and provided a key source of income for Hamas.

Cairo blames the tunnels for facilitating the movement of personnel and materials used by jihadists to conduct attacks in the Sinai.

Egyptian security officials had began seeking to undermine both the tunnels and the Hamas officials who they blame for maintaining and profiting from them even before the July ouster of then-president Mohammed Morsi, who along with his Muslim Brotherhood-linked government was widely seen as a regional ally of Hamas. After Morsi was removed from power in the wake of massive anti-government rallies, the army stepped up its efforts to destroy the tunnels.

Palestinian and Egyptian media outlets over the weekend conveyed reports of what the Jerusalem Post described as ‘intensifying tensions between Egypt and Hamas,’ specifically citing efforts by Egyptian authorities to revoke the citizenship and passports of of Hamas leaders:

The move is seen in the context of intensifying tensions between Egypt and Hamas in the aftermath of the downfall of deposed President Mohammed Morsi’s regime.

Under Morsi’s rule, the Egyptian authorities granted Egyptian citizenship to thousands of Palestinians from the Gaza Strip, including top Hamas officials.

[Photo: David Berkowitz / Flickr ]