President Donald Trump said in a meeting with Israeli Prime Minister Benjamin Netanyahu that he would cut off funding to the Palestinians unless they agree to resume peace talks.
Trump said at the World Economic Forum in Davos, Switzerland, that the Palestinians "disrespected us a few weeks ago by not allowing our great vice president" to meet with them. Hundreds of millions of dollars "is not going to them unless they sit down and negotiate peace."
He made a similar threat on Twitter earlier this month. Trump also said that the U.S. is moving its embassy to Jerusalem "ahead of schedule by years," adding that he expected to have a "small version" of the embassy by sometime next year.
The State Department has reneged on a pledge to contribute $45 million in food aid, health services and other relief promised to Palestinian refugees this month. Vice President Mike Pence traveled to Egypt, Jordan and Israel last weekend, but Palestinian leaders refused to meet with him because of Trump's decision to recognize Jerusalem as Israel's capital.
Netanyahu and Trump have found little to disagree on, a contrast with the Israeli leader's frequent clashes with former President Barack Obama. Trump's Jerusalem announcement in December angered the Palestinians and jeopardized his own administration's effort to restart peace talks. He's also threatened to scrap Obama's nuclear deal with Iran unless it's thoroughly revised, an approach the Israeli leader staunchly supports.
Iran is certain to be the top subject in Thursday's meeting. Earlier this month Trump issued an ultimatum to other world powers that are party to the Iran nuclear agreement, saying that he won't continue to waive sanctions lifted under the deal unless it's revised, giving the other signatories less than four months to resolve the dispute. Netanyahu told German Chancellor Angela Merkel in Davos yesterday that the only way to fix the nuclear deal "is to insert real, not cosmetic, fixes that will prevent Iran's nuclearization."
If Trump decides to abandon the agreement, "then we will back you all the way," Netanyahu said in the meeting.
European leaders have made clear they believe Iran is abiding by limits on its nuclear program set out in the deal.
Trump and Netanyahu are also likely to discuss the U.S. peace effort, which a White House official said earlier this week had hit "a bump" after Palestinian leaders shunned American envoys in protest of Trump's Jerusalem announcement. The White House still plans to unveil a plan in 2018 that will encompass broader regional diplomatic efforts that include Egypt, Jordan and Saudi Arabia.
Trump told Netanyahu that Israel "will pay for" his Jerusalem announcement, an apparent acknowledgment that the Jewish State would have to make a concession in peace talks. Netanyahu said that Trump's decision on Jerusalem "pushes peace forward."
Trump described Jerusalem's status as the "hardest subject" in negotiations between the Israelis and Palestinians, and said that his announcement "took it off the table; we don't have to talk about it anymore."
"You won one point and you'll give up some points later on in the negotiation, if it ever takes place," Trump said. "I don't know that it ever will take place."
Trump's son-in-law and senior adviser, Jared Kushner, and his Middle East envoy Jason Greenblatt have been developing a new peace plan for the Israeli-Palestinian conflict. The proposal is expected to be released early this year, but the administration — and the Israelis and Palestinians — have so far said little about its details.
"It's a great proposal for the Palestinians," Trump said. "I think it's a very good proposal for Israel."