GAZA, November 20, 2008 (WAFA)- Israel reinstituted its blockade of the Gaza Strip, Thursday, after a brief respite to let humanitarian aid pass through on Tuesday.

 United Nations Emergency Relief Coordinator, John Holmes, described the situation as 'desperate' and 'unacceptable.'

No fuel, humanitarian supplies or commercial commodities are allowed into Gaza anymore, according to the Office of the UN Special Coordinator for the Middle East Peace Process (UNSCO).

Mr. Holmes, who is also Under-Secretary-General for Humanitarian Affairs, said in a press conference held in Geneva, that the closure was seen as collective punishment. Half the population of Gaza was under 15 and were being held hostage by the situation.

Starting Thursday, the UN Relief and Works Agency for Palestine Refugees in the Near East (UNRWA) will have to suspend cash assistance to some 98,000 of the poorest people in Gaza due to the lack of New Israeli Shekel banknotes in banks there.

The Agency also warned that it is facing 'a grave and imminent crisis' and must receive additional pledges in the first quarter of 2009 if it is to continue assisting the 4.6 million people in its five field operations.

UNRWA Commissioner General Karen AbuZayd told donors, host governments and non-governmental organization (NGO) partners that according to present projections its core services will suffer a deficit of more than $87 million by then, leading to an overall shortfall of $160 million when combined with unfunded projects on hold from previous years.

'This will bring UNRWA closer to financial crisis than it has ever been,' she said today at the agency's annual meeting in Amman, Jordan, which heard updates from the directors for the five field operations; Syria, Jordan, Lebanon, the West Bank and Gaza.