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Second bolded part: what leverage, exactly, are we getting for funding Fatah and Hamas? Hamas is at war with the same country that we're giving billions of dollars a year to, and have been for decades. They are existential, zero-sum enemies...
I'm all about paying people to support our interests, but when they're acting directly against those interests, we either need to do something immediate and meaningful about it, or cease our support...
My best guess is, that at the top levels of intelligence and strategic planning, the idea of giving up aid to all sides would result in the obvious war, laying waste to the region for a while. Energy costs would spike. Every $10 increase in the price of a barrel of oil costs American consumers about $200m/day. We are cruising along around $70-80/barrel with Houthis and Ukraine going on. I couldn't imagine what it would be when shit goes haywire in the ME, but we get the point.
A huge war would also cause chaos with the resulting refugees and that would endanger our other more "useful" allies in the region.
I read the article you linked. I knew about the posters and paintings of "martyrs" but never the financial incentives. Holy shit, $39 grand/yr and a possible job, that's a lot of scratch.