From the BBC:
Israel’s cabinet has approved punitive sanctions on the Palestinian Authority, now led by militant group Hamas.
Israel will withhold an estimated $50m (Â£28m) in monthly customs revenues due to the PA, and will tighten borders for people and food crossing into Gaza.
Before the cabinet meeting, acting Prime Minister Ehud Olmert called the Hamas-led PA a “terrorist authority” and ruled out direct talks…
The newly-elected speaker of the Palestinian parliament, Aziz Duaik, said Israel’s decision would prove counter-productive.
“This is a faulty decision, and the Israelis must reconsider their decision. It will only increase hatred.”…
Veiled threats, blackmail and extortion have proven to be very effective diplomatic tools in the past, whether they were wielded by Arafat, Abbas, or now Hamas in an official capacity. Heavens, we wouldn’t want to make an already volatile situation worse, now would we?