Israel decided last month to suspend the monthly transfer of about $100 million in tax revenues it collects on behalf of Fayyad’s Palestinian Authority. The transfers, along with foreign aid, are crucial for keeping Fayyad’s government afloat. Nearly one-third of the close to 4 million Palestinians in the West Bank and Gaza depend on public sector salaries.

Fayyad told reporters Sunday that the sanctions have a “devastating impact” on the Palestinian economy.

Israel suspended the transfers in retaliation for Palestinian attempts to win international recognition for a state of Palestine.