LONDON — The U.S. fears that without a cash injection, the Palestinian Authority could collapse, entailing serious security implications for Palestinians and Israelis.
Secretary of State John Kerry discussed the issue Saturday with British Foreign Secretary Philip Hammond in London.
Kerry said the possibility of the Palestinian government halting security cooperation with Israel or disbanding because of its economic predicament was real.
The U.S. is trying to find a solution.
Israel has withheld tax revenue from the Palestinians since they decided to join the International Criminal Court last month.
U.S. options are limited. Its relationship with Israel is strained amid their leaders' dispute over Iran. And it has little leverage with Arab and European governments at a time it can offer little additional financial support itself because of opposition in Congress.