UNRWA says it received no official US notice on aid cuts

Israeli soldiers seen at the Qalandiya check point in the occupied West Bank

The threat comes on the same day that the USA withheld $225 million in aid to Pakistan over terrorism concerns.

Palestinians rely heavily on the $320 million in aid money they receive each year, which experts say helps bring some security to the volatile region.

Trump has previously said he wants to relaunch frozen peace talks between Israel and the Palestinians in search of the "ultimate deal". He went on to suggest the USA shouldn't make any future payments due to their refusal to accept his peace process.

Also on Tuesday, Nikki Haley, the USA ambassador to the U.N. threatened to cut funding to the U.N. Relief and Works Agency, the group that helps Palestinian refugees. "But then he recognized Jerusalem as Israel's capital, taking the single-most important part of negotiations and a two-state solution off the table", Shaath said.

The office of Palestine's President Mahmoud Abbas rejected what the Palestinians called Trump's "blackmail" attempt, saying "Jerusalem is not for sale, neither for gold nor silver".

Last month, Trump announced the USA would be moving its embassy in Israel from Tel Aviv to Jerusalem.

Last week, Haaretz reported that the Palestinian Authority is about to hand in the documents required for signing on to 22 global conventions and treaties, 18 of which are under United Nations auspices, in protest against the unilateral American recognition of Jerusalem as Israel's capital.

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She added: "We still very much want to have a peace process". The tweets also came after the White House confirmed that the USA plans to withhold some of its aid to Pakistan to pressure the country into better counterterrorism cooperation with the US.

Rebuffing the move, an extraordinary Organization of Islamic Cooperation (OIC) summit in Istanbul declared East Jerusalem to be Palestine's capital.

President Trump signaled in a tweet on Tuesday the United States could be ending its financial aid to the Palestinian Authority (PA) if they continue their refusal to cooperate in peace talks.

Mr Trump's declaration last month led Mr Abbas to say the USA could no longer play any role in the peace process. They're calling on Palestinian supporters to form a united front against Trump's position on Palestine.

The US was the biggest donor to UNRWA in 2016, giving $368,429,712.

Official reports said the U.S. was the largest donor to the agency, with a pledge of almost 370 million dollars as of 2016.

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