The US has criticized its staunch ally’s decision to freeze tax transfers to the Palestinian Authority.

State Department spokeswoman Jen Psaki says Washington regards such a move by Israel as unfortunate. She insisted that economic cooperation between Israel and the Palestinian Authority is important to the well-being of the Palestinian economy. Israel announced on Thursday that it would significantly cut the tax funds allocated to the P-A in retaliation for the Palestinians’ bid to join several international treaties. Earlier, Tel Aviv failed to release Palestinian prisoners as promised and moved forward with more settlement construction.

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