The UN agency for Palestinian refugees chief Philippe Lazzarini warned Thursday that the agency has reached a breaking point as it grapples to cope with Israel's war on Gaza.

"It is with profound regret that I must now inform you that UNRWA has reached a breaking point," Lazzarini said, as donors freeze funding, Israel exerts pressure to dismantle the agency and humanitarian needs soar.

"The Agency's ability to fulfill the mandate given through General Assembly resolution 302 is now seriously threatened," he said in a letter to the assembly.

That is the resolution under which the agency was founded in 1949, following the creation of Israel.

UNRWA employs some 30,000 people working in the occupied territories, Lebanon, Jordan and Syria.

Several countries – including the United States, Britain, Germany and Japan – have suspended funding to UNRWA in response to Israeli allegations that some of its staff participated in the Oct. 7 Hamas incursion.

In an interview published over the weekend, Lazzarini said $438 million has been frozen – the equivalent of more than half of expected funding for 2024. He said Israel was waging a concerted effort to destroy UNRWA.

The U.N. fired the employees accused by Israel and has begun an internal probe of UNRWA.

U.N. Secretary-General Antonio Guterres has also tasked an independent panel with assessing whether UNRWA acts in a neutral fashion in the Israeli-Palestinian conflict.

Lazzarini asserted Thursday that Israel has provided no evidence against the 12 former employees it accuses, but 16 countries have suspended funding anyway.

"I have cautioned donors and host countries that without new funding, UNRWA operations across the region will be severely compromised from March," he said.

He added: "I fear we are on the edge of a monumental disaster with grave implications for regional peace, security and human rights."

Israel has pounded the Gaza Strip since the Oct. 7 Hamas incursion. The ensuing Israeli war has killed more than 29,410 people and caused mass destruction and shortages of necessities. Nearly 70,000 people have been injured.

Around 1,160 Israelis are believed to have been killed in the Hamas incursion, while over 200 were taken back to Gaza as hostages.