The decrease in the tunnels' trade led to a shortage of goods in Gaza markets, especially of construction materials that are mainly brought in through the tunnels.

Subhi Radwan, the mayor of Rafah city, which borders Egypt, said about 80 percent of the tunnels do not function due to the Egyptian security measures. He noted that prices of building materials in Gaza have increased because smuggling is limited to fuel, some kinds of foods and clothes.

Hamas, the Islamic movement that controls Gaza, licensed the digging of tunnels beneath Gaza's southern border with Egypt to overcome the closure and blockade Israel imposed on the territory in 2007.

During the siege, which was meant to isolate Hamas, the tunnels served as Gaza's lifeline, but the demand on their trade dwindled after Israel eased restrictions on overland commercial crossings in 2010. The tunnels are used these days to smuggle goods that Israel still restricts, such as building materials and four-wheel- drive cars.

Egypt launched a military campaign in Sinai after the killing of 16 of its soldiers by unknown gunmen on Aug. 5. Hamas denied media reports that some of the militants used the tunnels in their movements to attack the soldiers.

Radwan said bulldozers on the Egyptian side of the borders are seen demolishing the tunnels on a daily basis.

Hamas has been proposing the establishment of a free trade zone with Egypt to replace the tunnels, but the West Bank-based Palestinian National Authority (PNA) opposes the move, saying that Hamas took over the Gaza Strip violently and so no international deals should be signed with it.