World Central Kitchen (WCK) has cut its hot meal distribution in Gaza by half, citing soaring food and fuel costs linked to the wider fallout from the US-Israeli war on Iran in February.
The organisation, the largest provider of hot meals in the Palestinian enclave, warned that escalating operational costs have made it impossible to maintain previous levels of aid, NPR reported on Thursday.
Daily meal production has fallen from around one million meals to 500,000.
The cuts come as Palestinians in Gaza remain heavily dependent on aid after more than two years of Israeli attacks and blockade, which have devastated the enclave's food sources and economy.
Earlier this month, WCK said "financial pressure" was already forcing it to scale back operations.
"We will still be delivering hundreds of thousands of hot meals every day to families in need and maintaining one of the largest food relief operations anywhere in the world, but at a reduced level," the group said.
It added that, while it had at times reached a peak of one million meals a day, its capacity could not sustain that output indefinitely.