More countries have halted funding to the largest UN agency operating in Gaza, as the crisis deepens over the alleged role of some staff in the 7 October Hamas attacks on Israel, Paralel.Az reports citing BBC.

Japan and Austria said they were suspending payments to the UN agency for Palestinian refugees, UNRWA.

The US, UK, Germany and Italy are also among those who have suspended funding.

UNRWA has told the BBC it is "extremely desperate" and that "the humanitarian needs in Gaza are growing by the hour".

The agency has sacked several of its staff over allegations they were involved on 7 October, when Hamas gunmen infiltrated Israel, killing about 1,300 people - mainly civilians - and taking about 250 others back to Gaza as hostages.

More than 26,000 people - mostly women and children - have been killed in Gaza since Israel launched a major military operation in response, the territory's Hamas-run health ministry says. Another 1.7 million people have fled their homes, with many of them sheltering at UNRWA facilities.

UN Secretary-General Antonio Guterres has said he is "horrified" by the accusations, but has appealed to donor countries to "guarantee the continuity of UNRWA's operations".

In a statement on Sunday, he said: "Of the 12 people implicated, nine were immediately identified and terminated by the Commissioner-General of UNRWA, Philippe Lazzarini; one is confirmed dead and the identity of the two others is being clarified."

But he said Gaza should not be penalised.

An UNRWA spokesperson said that if funding was not resumed, the agency would not be able to continue its operations beyond the end of February.