Britain, Italy and Finland yesterday became the latest countries to pause funding for the United Nations' refugee agency for Palestinians (UNRWA), following allegations its staff were involved in the October 7 attacks on Israel.

Set up to help refugees of the 1948 war at Israel's founding, UNRWA provides education, health and aid services to Palestinians in Gaza, the West Bank, Jordan, Syria, and Lebanon. It helps about two thirds of Gaza's 2.3 million population and has played a pivotal aid role during the current war.

The United States, Australia and Canada had already paused funding to the aid agency after Israel said 12 UNRWA employees were involved in the cross-border attack. The agency has opened an investigation into several employees severed ties with them.

The Palestinian foreign ministry criticised what it described as an Israeli campaign against UNRWA, and the Hamas group condemned the termination of employee contracts "based on information derived from the Zionist enemy."

The UK Foreign Office said it was temporarily pausing funding for UNRWA while the accusations were reviewed.

"The Italian government has suspended financing of the UNRWA after the atrocious attack on Israel on October 7," Foreign Minister Antonio Tajani said on social media platform X.

Finland also said it suspended funding.

Hussein al-Sheikh, head of the Palestinians' umbrella political body the Palestine Liberation Organization (PLO), said cutting support brought major political and relief risks.

"We call on countries that announced the cessation of their support for UNRWA to immediately reverse their decision," he said on X.

Meanwhile, Israel pressed ahead yesterday with its campaign against Hamas in Gaza's Khan Younis, as bad weather hit displaced Palestinians seeking refuge further north in the battered enclave.

Residents reported heavy aerial and tank fire across Khan Younis, an area of southern Gaza that has become the focus of Israel's ground offensive against Hamas, and around two main hospitals there.

Hamas said its fighters fired an anti-tank missile against an Israeli tank in southwest Khan Younis.

• 26,257 Palestinians killed
• Nearly 65,000 wounded since Oct 7
• 174 killed in 24 hours

The Israeli military said it killed at least 11 gunmen who were trying to plant explosives near troops and others firing rifles and rocket-propelled grenades at soldiers in Khan Younis.

The Palestinian Islamic Jihad group, allied with Hamas, said its fighters were engaging Israeli forces in the area and had fired rockets into Israel.

The Gaza Health Ministry said Israeli strikes hit in the vicinities of Al-Amal Hospital and the largest functioning medical facility in the south, Nasser Hospital.

The Israeli bombardment was compromising healthcare and endangering the lives of doctors, patients and displaced people, said ministry spokesman Ashraf Al-Qidra.

The Israeli military says it is in contact with hospital directors and medical staff by phone and on the ground to make sure that they are running and accessible. Israel says Hamas operates in and around medical facilities, an allegation the group denies.

In a ruling on Friday, the World Court stopped short of ordering a ceasefire but ordered Israel to prevent acts of genocide against Palestinians and do more to help civilians. Prime Minister Benjamin Netanyahu said afterward that the war aimed at eliminating Hamas would continue.

In the southern city of Rafah, Zainab Khalil, 57, displaced with her family several times until reaching shelter not far from the border with Egypt, said the International Court of Justice's ruling was important but not enough. "We want a ceasefire now," she said.

Some 26,257 Palestinians have been killed and nearly 65,000 wounded so far, including 174 killed in the last 24 hours, Gaza health authorities said yesterday. The majority of the enclave's 2.3 million population has been displaced.

Israel says 220 soldiers have died since it launched its ground offensive. It says it has killed at least 9,000 Gaza militants so far, a figure that Hamas has dismissed.

Residents and Hamas reported fighting yesterday in the central and northern parts of the enclave, where heavy rain flooded tents of those displaced, forcing some to seek alternative shelter in the middle of the night.

In Rafah, where over half of Gaza's people are now taking cover in shelters and tents, the Gaza Health Ministry said an Israeli air strike killed three people in a house there.

It was not immediately clear who the casualties were and there was no immediate comment from the Israeli military.

In the occupied West Bank, one man was killed in an exchange of fire with Israeli forces near Jenin, residents said.