US State Department warns of ‘massive’ negative impact if PA collapses

US State Department spokesman Matthew Miller told reporters on Thursday that Israel will see a "massive" negative impact if the Palestinian Authority is denied revenue.

"We have made clear to the government of Israel in some very direct conversations that there is nothing that could be more counter to the strategic interests of Israel than the collapse of the Palestinian Authority”, Miller said.

As stipulated by the 1994 Paris Protocol, Israel collects taxes on behalf of the Palestinians and then disburses the money to the PA. Since October 7, however, Israel has  been blocking the flow of revenue to the PA. 

The World Bank recently warned that the PA's fiscal situation has "dramatically worsened" with the risk of complete collapse.