Israel has decided to stop transferring tax revenue to the Palestinian Authority in the aftermath of UNESCO's acceptance of Palestine as a full member, at least temporarily.
But according to a high-ranking official in the Palestinian government, Israel is facing considerable international pressure and is unlikely to continue the sanctions long past the Muslim holiday of Eid al-Ahda.
Israel knows that permanently cutting off funds to the Palestinian Authority will essentially amount to an end of the Oslo peace agreement, so it is hesitant to follow through on the threats, said the official who spoke on the condition of anonymity due to the sensitivity of the matter.
Israel's decision on Tuesday to cut off transfers of Palestinian tax revenues will deprive the authority of about $100 million, officials say. The decision threatens the salaries of about 180,000 employees.
And as Arab governments busy themselves with internal concerns amid the Arab Spring and revolutions in five countries so far, the PA is unlikely to find economic assistance within the region.
However, according to the source, Israel will not allow the PA to fall apart as it knows Hamas would take its place. It would also end security coordination between both sides, "which of course Israel doesn't want."
Palestinian officials said that Israel's government is concerned enough to urge patience in the US too: High-ranking military officials have sent messages to American lawmakers urging them to continue funding the PA and put aside threats to sanction it.
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