The United Nations and international aid groups have launched an appeal for €225 million in emergency aid for the Palestinians, saying needs would rise in 2005.
It was the first consolidated appeal by United Nations agencies and humanitarian agencies such as Oxfam, Care International, Save the Children and the World Health Organisation on behalf of Palestinians.
They said a humanitarian crisis was brewing amid growing impoverishment, continued violence on the part of the Israeli army and Palestinian militants, and restrictions on access for relief agencies.
"Humanitarian conditions continue to worsen," said Mr David Shearer, head of the UN Office for the Coordination of Humanitarian Affairs.
The Palestinian economy is in deep recession - a quarter of Palestinians are in deep poverty and unable to feed themselves, while a third are unemployed, the appeal sponsors said.
Poverty was expected to rise despite a planned Israeli pullout from Gaza in 2005, in part because of a wave of house demolitions carried out during Israeli army strikes against militants, they said.
"We will need more emergency projects in Gaza if the disengagement plan is implemented," Mr Shearer said.
The appeal statement said aid dependence in territories occupied by Israel in the 1967 Middle East war was expected to increase in 2005 primarily due to Israeli military blockades and restrictions on movement.
Israel says Palestinian militant attacks including suicide bombers have forced it to impose closures around West Bank towns and roadblocks outside. But it says such measures have been eased recently and has denied impeding aid operations.
Roughly half of the aid appeal was designated for economic recovery and infrastructure. Another €80 million would go to food shipments, and other money would be earmarked for health, education and agriculture.