The United States Donald Trump administration is expected to announce on Monday that it will close the Palestine Liberation Organization's office in Washington.
The ICC launched a preliminary probe in 2015 into allegations of war crimes and crimes against humanity in Israel and the Palestinian territories, in the wake of the Gaza war the previous year.
The Palestinians accused the administration of dismantling decades of US engagement with them.
In recent weeks, the United States has cut more than $200 million in bilateral aid to the Palestinians as well as cancelled its support for the UN agency for Palestinian refugees.
The move also comes as the USA administration prepares to unveil a controversial Middle East peace plan known as the "Deal of the Century".
The other 90 percent interviewed by the Palestinian Center for Policy and Survey Research agreed with Palestinian Authority President Mahmoud Abbas that the Trump administration is hopelessly biased in Israel's favor.
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He has cited the Trump administration's decision to recognize Jerusalem as Israel's capital and cuts in aid to the Palestinians and the United Nations agency for Palestinian refugees.
Husam Zomlot, head of the PLO mission in Washington, called the closure of the office "bullying and blackmailing" and said the United States government was "blindly executing Israel's 'wish list'".
Several U.S. presidents in both parties have tried to broker a peace accord without success.
The White House said that to the extent permitted by US law, the Trump administration would ban ICC judges and prosecutors from entering the United States, sanction their funds in the USA financial system and prosecute them in the USA criminal system.
Wisma Putra said Malaysia further regarded the actions of the USA government as a humiliation to the Palestinians and their struggle for the right to self-determination.
Knesset Speaker Yuli Edelstein (Likud) said the PLO mission was only good at spreading hatred and incitement and made no effort to advance peace.
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Israel says Khan al-Ahmar was illegally built and has offered to resettle residents 12 kilometers (7 miles) away.
The State Department said the USA step - the latest in a series targeting the Palestinians - came after a review of the office of the Palestine Liberation Organization centred on the fact that no "direct and meaningful negotiations with Israel" are underway despite previous warnings.
Germany, France, Italy, Spain and Britain called on Israel not to raze the Bedouin village of Khan al-Ahmar in the occupied West Bank after Israel's top court on Wednesday cleared the way for its demolition.
Trump during the 2016 presidential campaign promised to move the U.S. Embassy from Tel Aviv to contested Jerusalem.
Wisma Putra in the statement said such moves by the USA government weakened the multilateral system; ignored the reality on the ground; supported and helped to perpetuate Israel's brutal policies which contravened worldwide law; and violated the rights of the Palestinian people.
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