Israel imposed economic sanctions against the Palestinians on Thursday in retaliation for their leadership signing international conventions, moves that further complicate U.S. efforts to keep peace talks from collapsing before an April 29 deadline.
An Israeli official, speaking on condition of anonymity, said the Jewish state would deduct debt payments from tax transfers which the Palestinian Authority routinely receives, and limit the self-rule government's bank deposits in Israel.
On Wednesday, Israel said it was limiting its contacts with Palestinian officials, citing Palestinian President Mahmoud Abbas' signing of U.N. human rights conventions last week.
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