The Gaza Reconstruction Headquarters, newly established in the Iranian capital Tehran, will "build 1,000 houses, 10 schools and five mosques, and reconstruct 500 shops, a hospital and a university," said the country's vice president Ali Saeedlou.
Following its war in Lebanon in 2006, Israel was powerless to stop Iran funding a rebuilding programme that entrenched the power of the Shia militant group Hizbollah.
Now Israeli strategists fear Iran's goal in Gaza is to ensure that its ally Hamas retains its influence, despite efforts to sideline it with a huge international reconstruction programme.
As schoolchildren returned to the UN-run schools that were used as shelters during the 22-day war, Hamas activists were seen handing envelopes containing five $100 notes to Gazans who had lost homes or family members.
But while Israel views Iran's assistance for Hamas as a hostile act, it has not yet found a way to stop Hamas getting control of the money.
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