Palestinian militants have fired over 250 rockets into Israel, drawing dozens of retaliatory airstrikes on targets across the Gaza Strip in a round of intense fighting that broke a monthlong lull between the bitter enemies.
The Palestinian issue, one of a handful that has stalemated completion of a treaty between Egypt and Israel for four months, appears to be the principal obstacle: The question is whether the treaty terms should specify when Palestinian self-rule should be implemented.
The 120-seat parliament voted 87-15 in favour of the legislation that orders holding back part of the roughly $130 million in tax revenues that Israel collects on behalf of the Palestinians each month under interim peace agreements.
Israelis and Palestinians reacted in starkly different terms. Prime Minister Benjamin Netanyahu hailed Trump's announcement as an "important step toward peace,'' and Israeli opposition leaders echoed his praise.