The Palestinian central council has authorised its executive committee and President Mahmoud Abbas to suspend recognition of Israel and stop security co-operation.
If adopted, the steps could threaten the landmark Oslo Accords that created the Palestinian Authority over 20 years ago.
The statement late on Monday signalled the deep-seated Palestinian frustration over the recent deterioration in conditions for a long-awaited peace plan promised by Donald Trump, who described himself as the most “pro-Israel” candidate during the US presidential election.
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