Biden has ‘frustrating’ call with Netanyahu over Israel’s decision to withhold tax revenue from the Palestinian Authority in latest sign of tension between Washington and Tel Aviv

  • A US official described the call as one of the most difficult and “frustrating” conversations Biden has had with Netanyahu.
  • Tensions between the two leaders have increased since the start of the war on October 7
  • “The feeling was that the president works for Bibi every day and that Bibi should give something back,” the US official said.

President Joe Biden had a “frustrating phone call” with Israeli Prime Minister Benjamin Netanyahu over the weekend, pushing him to release Palestinian Authority tax revenues, a new report showed Friday.

The call is the latest sign of tensions between Washington and Tel Aviv as the war against Hamas continues.

An American official said this Axios the call was one of the most difficult and “frustrating” conversations Biden has had with Netanyahu since the war in Gaza began on October 7.

While Biden publicly supports Israel and the war, tensions have arisen behind the scenes as he has urged Netanyahu to tone down the attacks and expressed concern about the number of civilians being killed. There is also growing international pressure on Israel to declare a ceasefire.

President Joe Biden

Israeli Prime Minister Benjamin Netanyahu

President Joe Biden had a “frustrating phone call” with Israeli Prime Minister Benjamin Netanyahu this weekend

Moreover, the president cannot afford for America to become involved in a protracted conflict in the Middle East as he prepares for a second term next year. US forces in Syria and Iraq have already faced attacks from Iranian proxy groups.

He also cannot afford for the Palestinian Authority to go bankrupt, which could happen if it does not get the financial resources.

Israel collects monthly tax revenues on imports and exports and transfers those funds to the PA, one of their main sources of income.

But they have started delaying some transfers because they fear the money could reach Hamas. In return, the PA said it would accept all the funds, or none.

However, Biden and his administration are concerned that without the money, the Palestinian Authority will collapse, leading to an escalation of violence in the West Bank.

During their conversation, Biden urged Netanyahu to move ahead with a proposal that the prime minister has already indicated was acceptable: transfer the tax revenues to Norway for safekeeping until an arrangement can be reached to reassure Tel Aviv that it money will not go to Hamas.

The Palestinian Authority has already accepted this proposal.

But Netanyahu backtracked, Axois reported, saying he no longer thinks this is a good idea. Biden, in turn, told Netanyahu to resolve the issue, noting that “this conversation is over” and ending the call.

“The feeling was that the president is working for Bibi every day and if Bibi has to give back and take a political risk, he is not willing to do that,” a US official said.

Israeli armored personnel carrier approaches Gaza border

Israeli armored personnel carrier approaches Gaza border

President Joe Biden, left, meets with Israeli Prime Minister Benjamin Netanyahu, right, to discuss the war between Israel and Hamas, in Tel Aviv, Israel, on October 18, 2023

President Joe Biden, left, meets with Israeli Prime Minister Benjamin Netanyahu, right, to discuss the war between Israel and Hamas, in Tel Aviv, Israel, on October 18, 2023

The situation in Gaza has developed into a humanitarian crisis as aid workers struggle to enter the area and bring in desperately needed food, water and medical supplies.

The international aid group Mercy Corps warns of famine and disease affecting the civilian population.

At least 21,320 people have been killed and 55,603 injured since the war began, according to Gaza's health ministry.

Among the dead is Judi Weinstein Haggai, a citizen of Canada, the United States and Israel.

According to the White House, there are fewer than 10 Americans in captivity in Gaza.