US President Donald Trump has threatened to halt aid to the Palestinians if they do not agree to take part in peace talks.
The State Department confirmed he was talking about aid for economic and security assistance.
Speaking at the World Economic Forum in Davos in Switzerland, Mr Trump said the US gives the Palestinians “hundreds of millions of dollars in aid and support” a year.
He chastised the Palestinian leadership for disrespecting Vice-President Mike Pence by refusing to meet with him in the region earlier in the week.
And he said he was the first US president to link the issue of aid funding to the peace process