The Israeli Cabinet on Sunday approved a halt in monthly transfers of tens of millions of dollars to the Palestinians, in the first response to Hamas taking control of the Palestinian parliament.
Israel collects and transfers about $50 million in tax money for the Palestinians each month. The money is essential for the Palestinian Authority to meet its monthly payroll for about 140,000 workers.
The ministers also urged the international community to withhold most aid to the Palestinian Authority, though it said humanitarian assistance should continue. But they stopped short of more drastic measures, including sealing off the Gaza Strip, favored by security officials.