Netanyahu, Biden discuss state of war in first call in weeks amid growing divide
US president stresses ‘Israel’s responsibility to reduce civilian harm,’ asks about status of hundreds of millions of dollars in tax revenues that Israel has been withholding from PA
Prime Minister Benjamin Netanyahu spoke on the phone with US President Joe Biden Friday evening, in what was their first conversation in 27 days.
Hebrew media reported that the conversation lasted for nearly 40 minutes and was held in good spirits.
White House National Security Council spokesman John Kirby said during a press briefing that the two discussed ongoing efforts to secure the release of all remaining hostages held in Gaza.
“The two leaders also reviewed the situation in Gaza and the shift to targeted operations that will enable the flow of increasing amounts of humanitarian assistance, while keeping the military pressure on Hamas and its leaders significant,” Kirby said.
Biden stressed “Israel’s responsibility — even as it maintains military pressure on Hamas and its leaders — to reduce civilian harm and to protect innocent civilians,” Kirby said.
Also during the call, Biden asked for a status update regarding the hundreds of millions of dollars in tax revenues that Israel has been withholding from the Palestinian Authority, which has infuriated the US. Kirby noted that the funds also go toward paying the salaries of the PA security forces with whom Israel cooperates to combat terror in the West Bank.
Israel’s security cabinet is slated to hold a Sunday vote on a new proposal that would see the funds transferred after months of delay.
“The president also discussed his vision for a more durable peace and security for Israel, fully integrated within the region, and a two-state solution with Israel’s security guaranteed,” Kirby added.
On this issue, there has been growing daylight between Israel and the US, with the former rejecting the latter’s vision for a post-war Gaza which would be reunited politically with the West Bank under the PA’s rule as part of a broader diplomatic initiative aimed at an eventual two-state solution and an expanded Abraham Accords.
Netanyahu has ruled out the notion of establishing a Palestinian state but has offered few details on his alternative vision for Gaza while blocking the cabinet from holding discussions on the matter, knowing that it risks collapsing his coalition.
“We are not trying to force their hand or force them to change their policy… but we can’t talk about post-war Gaza without discussing the Palestinian people’s aspirations and governance in Gaza,” Kirby said during his press briefing.
Netanyahu has said the PA, which has not condemned Hamas’s October 7 massacres and which continues to pay stipends to terrorists and their families, cannot run Gaza.
Netanyahu reportedly rejected a US proposal, presented by US Secretary of State Antony Blinken when he visited earlier this month, that would have seen Saudi Arabia help with the reconstruction of Gaza along with several other Arab countries in addition to agreeing to normalize ties with Israel, on the condition that Jerusalem agree to take steps to create a pathway to an eventual Palestinian state.
On Thursday, US State Department spokesperson Matthew Miller said there was “no way” to solve Israel’s long-term security challenges in the region and the short-term challenges of rebuilding Gaza without the establishment of a Palestinian state.
Speaking at a news briefing, Miller said Israel had an opportunity right now as countries in the region were ready to provide security assurances to Israel.
“There is no way to solve [Israel’s] long-term challenges to provide lasting security, and there is no way to solve the short-term challenges of rebuilding Gaza, of establishing governance in Gaza and of providing security for Gaza, without the establishment of a Palestinian state,” US State Department spokesman Matthew Miller said upon being asked to respond to Netanyahu at a press briefing.
In their last phone call on December 23, Biden was said to have lost his patience and ended the call abruptly after Netanyahu again dragged his feet regarding US demands that Israel release hundreds of millions of dollars in tax revenues that it has been withholding from the PA.
In November, the cabinet approved a partial transfer of funds to the Palestinian Authority while retaining nearly half the initial amount — corresponding to the sum the PA uses to pay for services along with its employees in the Gaza Strip — with Finance Minister Bezalel Smotrich steadfastly refusing to transfer the funds, claiming the cash could be transferred to Hamas.
The PA has refused to accept any of the funds — which are tax revenues collected by Israel on the PA’s behalf — as long as the money for Gaza is not included. Despite prolonged US pressure for Israel to release the monies, Smotrich has remained adamant in his position.
In an unsourced report on Thursday, Channel 12 said that the finance minister agreed to a proposal in which the funds would be transferred to a third party, such as Norway, before being handed over to Ramallah, allowing Israel to not be directly responsible for its transfer.
The transfer would be made on the condition that Norway — or another third country — and the United States ensure that none of the money is in turn transferred to the Gaza Strip, Channel 12 reported.
Visiting Israel last week, Blinken urged Israel to transfer the funds: “Those are their revenues,” he said at a January 9 press conference. The PA “should have them.”
Blinken said the PA needed the money to pay its employees, some of whom do essential work in the West Bank. He cited the PA security forces, who he said were trying to keep peace, security and stability in the West Bank — and that’s “profoundly in Israel’s interests.”
