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GENEVA: The head of the UN Palestinian refugee agency said on Tuesday he may have to take an “unprecedented decision” about the services it provides if funding is not found soon to ease a cash flow crisis.

Philippe Lazzarini said the United Nations Relief and Works Agency for Palestine Refugees in the Near East (UNRWA) faced a $200 million deficit.

“Cash flow is managed on a weekly basis,” he told reporters in Berlin. “Without additional funding I will soon have to take an unprecedented decision affecting our services to Palestinian refugees.”

Lazzarini gave no further details of what that decision might entail.

The United States was UNRWA’s biggest donor but President Donald Trump announced broad cuts in foreign aid, including to UNRWA, earlier this year.

Other Western governments’ aid budgets are also under pressure following calls by Trump for more spending on defense as Russia’s war in Ukraine drags on.

UNRWA provides aid, health and education services to millions in the Palestinian territories and neighboring Arab countries of Syria, Lebanon and Jordan.

Lazzarini said that two weeks ago he had been about to suspend 10,000-15,000 UNRWA staff in the region because of the cash flow crisis but an advance contribution from a donor had given the agency respite for the next two months.

“Just to process the payroll of our staff we need $60 million a month. We have no visibility anymore beyond September,” he added.

United Nations Secretary-General Antonio Guterres has requested a strategic assessment of the impact of the UNRWA mandate and will propose how the right of Palestinian refugees can be protected, Lazzarini said.

Israel has banned UNRWA from operating on its territory, accusing it of employing members of Palestinian militant group Hamas who took part in the October 2023 attacks on Israel that led to the war in Gaza.

UNRWA said as the ban went into effect this year that operations in the Gaza Strip and West Bank would also suffer.

The UN has said it will investigate all accusations made by Israel and asked Israel for evidence, which it says has not been forthcoming. Lazzarini has said that UNRWA has been the target of a disinformation campaign.

BEERSHEBA, Israel: US President Donald Trump said a ceasefire between Iran and Israel was in effect Tuesday after the deal initially faltered and the American leader expressed deep frustration with both sides.

Israel had earlier accused Iran of launching missiles into its airspace after the truce was supposed to take effect and the Israeli finance minister vowed “Tehran will tremble.”

Iran’s military denied firing on Israel, state media reported — but explosions boomed and sirens sounded across northern Israel midmorning, and an Israeli military official said two Iranian missiles were intercepted.

Trump told reporters at the White House before departing for a NATO summit that in his view, both sides had violated the nascent agreement. He had particularly strong words for Israel, a close ally, while suggesting Iran may have fired on the country by mistake.

But later he said the deal was saved.

“ISRAEL is not going to attack Iran. All planes will turn around and head home, while doing a friendly “Plane Wave” to Iran. Nobody will be hurt, the Ceasefire is in effect!” Trump said in his Truth Social post.

Indeed, Israeli Prime Minister Benjamin Netanyahu’s office said he held off on tougher strike against Iran after speaking to Trump.

The conflict, now in its 12th day, began with Israel targeting Iranian nuclear and military sites, saying it could not allow Tehran to develop atomic weapons — and that it feared the Islamic Republic was close. Iran has long maintained that its program is peaceful.

Many worried the war might widen after the US joined the attacks by dropping bunker-buster bombs over the weekend and Israel expanded the kinds of targets it was hitting.

But after Tehran launched a limited retaliatory strike on a US military base in Qatar on Monday, Trump announced the ceasefire.

Israel accuses Iran of violating the truce. Iran denies that

The deal got off to a rocky start.

An Israeli military official who spoke on the condition of anonymity in line with military regulations said Iran launched two missiles at Israel hours into the tenuous ceasefire. Both were intercepted, the official said.

Iranian state television reported that the military denied firing missiles after the start of the ceasefire — while accusing Israel of conducting strikes.

As Trump spoke to reporters at the White House before departing for the NATO summit, he expressed disappointment with both sides.

Iran “violated it but Israel violated it too,” Trump said. ”I’m not happy with Israel.”

Trump’s frustration was palpable, using an expletive to hammer home his point.

“We basically have two countries that have been fighting so long and so hard that they don’t know what the f— — they’re doing,” he said.

Later, however, he announced that Israel had backed off its threat to attack Tehran and would turn its jets around.

Netanyahu’s office said Israel struck an Iranian radar in response to the Iranian missile attack early Tuesday — but held off on something bigger.

“Following President Trump’s conversation with Prime Minister Netanyahu, Israel refrained from additional attacks,” Netanyahu’s office said.

Breakthrough announced after hostilities spread

Netanyahu said Israel had agreed to a bilateral ceasefire with Iran, in coordination with Trump, after the country achieved all of its war goals, including removing the threat of Iran’s nuclear and ballistic missile programs.

Iranian Foreign Minister Abbas Araghchi said that his country would not fire at Israel if it was not fired upon, but that a “final decision on the cessation of our military operations will be made later.”

It’s unclear what role Ayatollah Ali Khamenei, Iran’s leader, played in the talks. He said earlier on social media that he would not surrender.

Trump said Tuesday that he wasn’t seeking regime change in Iran, two days after first floating the idea.

“Regime change takes chaos,” Trump told reporters on Air Force One.

Over the weekend, he mused on his social media account that “if the current Iranian Regime is unable to MAKE IRAN GREAT AGAIN, why wouldn’t there be a Regime change???”

The ceasefire came after hostilities spread further across the region.

Israel’s military said Iran launched 20 missiles toward Israel before the ceasefire began on Tuesday morning. Police said they damaged at least three densely packed residential buildings in the city of Beersheba. First responders said they retrieved four bodies from one building and were searching for more. Earlier, the Fire and Rescue service said five bodies were found before revising the number downward. At least 20 people were injured.

Outside, the shells of burned out cars littered the streets. Broken glass and rubble covered the area. Police said some people were injured while inside their apartments’ reinforced safe rooms, which are meant to withstand rockets but not direct hits from ballistic missiles.

Iran launched a limited missile attack Monday on a US military base in Qatar, retaliating for earlier American bombing of its nuclear sites. The US was warned by Iran in advance, and there were no casualties.

Drones attacked military bases in Iraq overnight, including some housing US troops, the Iraqi army and a US military official said Tuesday.

A senior US military official, who spoke on condition of anonymity because he was not authorized to comment publicly, said US forces had shot down drones attacking Ain Assad in the desert in western Iraq and at a base next to the Baghdad airport, while another one crashed.

No casualties were reported and no group claimed responsibility for the attacks in Iraq. Some Iran-backed Iraqi militias had previously threatened to target US bases if the US attacked Iran.

Conflict has killed hundreds

In Israel, at least 28 people have been killed and more than 1,000 wounded in the war. Israeli strikes on Iran have killed at least 974 people and wounded 3,458 others, according to the Washington-based group Human Rights Activists.

The group, which has provided detailed casualty figures from Iranian unrest, said of those killed, it identified 387 civilians and 268 security force personnel.

The US has evacuated some 250 American citizens and their immediate family members from Israel by government, military and charter flights that began over the weekend, a State Department official said.

There are roughly 700,000 American citizens, most of them dual US-Israeli citizens, believed to be in Israel.