Senior Palestinian officials have vehemently denied a report in the Israeli media, which claimed that the PA has agreed to halt efforts to get Israeli charged with war crimes in exchange for Palestinian tax revenues.
Israel will allow the transfer of hundreds of millions of shekels in tax revenues to the Palestinian Authority, the prime minister's bureau announced on Friday.
Israel's decision to withhold $130 million a month in revenue collected on behalf of the Palestinians is strangling the economy and leaving the banking system dangerously exposed, the Palestinian central bank governor said on Wednesday.
An unconvinced President Barack Obama said Tuesday that Israeli Prime Minister Benjamin Netanyahu's efforts to clarify pre-election statements rejecting creation of a Palestinian state still do not appear to advance the prospect of a two-state solution to Mideast peace.
Israel's prime minister has secured a majority of backers in the new parliament and will now be tasked with forming the next government.
Prime Minister Benjamin Netanyahu of Israel on Thursday tried to backtrack from his pre-election declaration that no Palestinian state would be established on his watch, but his new assertions appeared to do nothing to assuage an infuriated Obama administration.