Israel on Sunday roundly rejected the United Nations' endorsement of an independent state of Palestine, announcing it would withhold more than $100 million collected for the Palestinian government to pay debts to Israeli companies.
It was the second act of reprisal since the UN General Assembly voted overwhelmingly on Thursday to support the Palestinians' statehood initiative. The following day, Israel announced it would start drawing up plans to build thousands of settlement homes, including the first-ever residential developments on a sensitive piece of land near Jerusalem. Actual construction would be years away.
Prime Minister Benjamin Netanyahu declared the statehood campaign, led by Palestinian President Mahmoud Abbas, as "a gross violation of the agreements signed with the state of Israel."