Rebuffing Trump aid threat, Palestinians say Jerusalem 'not for sale'

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Several hours later, Trump gave credence to Haley's statement by tweeting that "we pay the Palestinians HUNDRED OF MILLIONS OF DOLLARS a year and get no appreciation or respect".

President Trump on Tuesday angrily threatened to cut off us aid to Palestinians as punishment for what he called their failure to show "appreciation or respect" to the United States. "They don't even want to negotiate a long overdue peace treaty with Israel", Trump said on Twitter.

"The Palestinians now have to show their will that they want to come to the table".

Donald Trump has threatened to cut Palestinian aid, in an escalation to the conflict between leaders.

The remark was widely condemned by the Palestinian side, which is angry at the USA over Trump's decision to recognize Jerusalem as the capital of Israel.

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Tuesday's tweets marked a tacit admission by Trump that his decision to recognize Jerusalem as Israel's capital and move the United States embassy there has thrown a wrench into his administration's plans to restart the peace process between Israelis and Palestinians, which he had dubbed "the ultimate deal".

He has heaped pressure on Palestinians to do a deal, threatening to close the de facto "embassy" in Washington in addition to recognising Israel's contested claim on Jerusalem and now threatening aid.

'President Trump has sabotaged our search for peace, freedom and justice, ' she said.

"Jerusalem is not for sale, neither for gold nor for silver", Nabil Abu Rudainah said on Wednesday.

Earlier the U.S. announced its plan to cut funding to various UN bodies for an alleged anti-Israeli bias and said it would cut aid to nations, which voted for a non-binding UN Assembly resolution, which condemned USA recognition of Jerusalem as Israeli capital.

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The United States does not pay large amounts of money directly to the Palestinian Authority, the government that rules over parts of the Palestinian West Bank.

It was not immediately clear whether Trump was threatening all of the budget, worth $319 million in 2016, according to USA government figures.

The U.S. Ambassador to the U.N., Nikki Haley, said in a speech earlier on Tuesday that the U.S. would stop funding UNRWA unless the Palestinians "agree to come back to the negotiation table".

Trump has said his decision merely recognized the reality that Jerusalem already serves as Israel's capital and wasn't meant to prejudge the final borders of the city.

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