Israeli officials said on Sunday they will consider taking additional actions against Palestine for its decision to join the International Criminal Court.
"The Palestinian Authority has chosen confrontation with Israel and we will not sit idly by," Prime Minister Benjamin Netanyahu told his Cabinet, reported The Associated Press.
Palestine decided last week to join the International Criminal Court, where it hopes to pursue war crimes charges against Israel.
"If the Palestinian Authority doesn't take a step back, I think we have to take much more severe steps," said Strategic Affairs Minister Yuval Steinitz, who referred to a "gradual dissolution" of the Palestinian Authority. "We should not aid the existence of this authority," he added.
Just one day ago, Israel froze the transfer of $127 million in Palestinian Authority tax funds.
Palestine's chief negotiator, Saeb Erakat, called the freeze "piracy," and Hamas said it could be considered "the theft of Palestinian money," AFP reported.
Netanyahu said Israel will not allow its military members to appear before the International Criminal Court in The Hague.
"We will not let Israel Defence Forces (IDF) soldiers and officers be dragged to the International Criminal Court in The Hague," he said, reported AFP. "IDF soldiers will continue to defend Israel with determination and strength - and as they defend us, we will defend them, with the same determination and the same strength."
Instead, Netanyahu said it was the Palestinian leadership that should appear before The Hague for signing a 2014 reconciliation agreement with Hamas.
"Those who should face justice are the heads of the Palestinian Authority who signed a covenant with the war criminals of Hamas," he said.