The Israeli economy is losing about NIS 8 million a day in direct damages from the closure of the Gaza Strip as a result of the Hamas takeover.

According to those involved in trade with the Palestinians in Gaza, supplies should last only two weeks at most. "There is already a shortage of drugs and some foodstuffs," said a businessman from Gaza, "and the main problem is the continuous rise in prices for essential goods."

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According to the office of the Coordinator of Government Activities in the Territories, which is responsible for supervising trade between Israel and the Palestinian Authority, businesses that market to Gaza or rely on production in the strip will be forced to find alternative markets and suppliers in the long run.

In addition to fuel supplier Dor Alon, dairy and food producers are being hurt by the situation in Gaza, as are providers of construction materials and textiles.

Shalom Harari, a former adviser to the defense minister and a terrorism researcher at the Interdisciplinary Center in Herzliya, said the crossings are a political and social lifeline, not just an economic one. He said that since Hamas took control in Gaza there is no longer anyone to talk to on the other side. Mohammed Dahlan's Preventive Security forces had controlled the crossings until recently.

According to Harari, there is no international body or business that will risk continuing to work with the Palestinian Authority in Gaza if they want to guard their money.

The main product supplied to the Palestinians is fuel, with annual sales of NIS 2.15 billion in 2006.

Food sales totaled NIS 250 million in 2006. In the past such sales had reached NIS 600 million a year, but as a result of the security situation, business dropped in recent years.

Dairy and fresh foods supplier Tnuva is one of the companies that will be affected most; it is the biggest food supplier to Gaza.

Another sector to be hurt is fruit, with an estimated 15 percent of all Israeli fruit production exported to Gaza. These include bananas, plums, peaches and mangoes estimated at 70,000 tons a year.

In some cases this fruit is grown specifically for Gaza and is not sold in Israel, and it will be extremely difficult for farmers to find alternative markets in Israel or overseas.

Palestinian exports to Israel are also expected to be harmed seriously.

Today such exports are estimated at NIS 4 million a day. Most of these goods are fruits and vegetables such as tomatoes and cucumbers, and other products such as bamboo furniture and textiles.

Many of the major Israeli fashion chains such as Castro and Renuar purchase the textile products.

Agricultural exports from Gaza are sent abroad through Agrexco and are mostly flowers, cherry tomatoes and strawberries in season. Gaza also exports food products and ice cream overseas via Israel.

Also, since next year is the Jewish sabbatical year, a number of firms had arranged to import Gaza vegetables to Israel, and it is no longer certain that these arrangements will be carried out.