Israel is considering retaliatory measures against the Palestinians in response to their renewed drive for international recognition of their promised state, Israeli media reported today.
Prime Minister Benjamin Netanyahu and Defence Minister Moshe Yaalon have asked the head of the Israeli military administration in the occupied West Bank, General Yoav Mordechai, to draw up a range of options, the Haaretz newspaper reported.
The move came despite appeals from Israel's US ally for politicians on both sides to demonstrate leadership and refrain from "unhelpful" tit-for-tat moves that further jeopardise the teetering peace process.
Israel says the Palestinians' application on Tuesday to adhere to 15 international treaties violated the undertakings they gave when the peace talks resumed last July.
The Palestinians counter that the treaty move was a response to Israel's failure to release a fourth and final batch of veteran Arab prisoners which they say reneged on its own undertakings.
Haaretz said the options under consideration included withholding tax revenues levied by Israel on behalf of the Palestinian Authority.
Israel briefly imposed the same financially crippling measure in December 2012 to punish the Palestinians' successful drive for observer state status at the United Nations, over its own strong opposition and that of the US.
Other options under consideration include tightening the restrictions imposed on Palestinian activities in the more than 60 per cent of the West Bank which is under the sole control of the Israeli army, Haaretz said.
Parliament is to meet on Monday to debate the crisis in the peace talks, said the Israel Hayom newspaper, which is considered close to Netanyahu.
