Losing significant funding from its largest donor, the United States, could be "catastrophic" for Palestinians, said a UN agency that provides aid to Palestinian refugees.
The Settlement Regularization Law allows Israel to "legalize" settlements built on privately-owned Palestinian land via de facto expropriation.
A State Department official later said that no decision had been made on payment.
Construction of Israeli settlements in the West Bank can not help broker peace between the Israelis and Palestinians, Russia's Foreign Ministry said in a statement posted on its website on Saturday. Indeed, his just trying to mediate between Israelis and Palestinians when Trump is so strongly supportive of Israel may bolster Russia's image as a responsible power and America's as an irresponsible one.
At least 46 Palestinians have been injured in clashes with Israeli forces who again deployed tear gas and live ammunition at the weekly "Day of Rage" protests against the USA decision to recognize Jerusalem as Israel's capital.
An Israeli army spokesperson told Ma'an that "violent riots" broke out in two locations along the Gaza border, with Palestinians rolling burning tires and throwing rocks at the border fence.
Israel occupied East Jerusalem at the end of the 1967 war with Syria, Egypt and Jordan; the western half of the holy city had been captured in the 1948 Arab-Israeli war.
"We believe that Israel's stance is not conducive to the creation of conditions for opening the direct talks between the Israelis and the Palestinians during which all the problems relating to the final status should be settled", the statement said.
A committee of ministers from Egypt, Morocco, Saudi Arabia, the United Arab Emirates and Palestine met with Jordanian Foreign Minister Ayman Safadi to strategize a response to President Donald Trump's decision to move the U.S. embassy from Tel Aviv to the holy city.
They also stressed the necessity to confront Trump's decision.
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