(Transcript from SBS World News Radio)
Tensions are again rising in the Middle East, with Israel firmly opposing moves from Palestinian authorities to take action against Israel's occupation of the West Bank and Gaza.
Israel is withholding Palestinian tax revenues and seeking ways to bring war crimes prosecutions against Palestinian leaders in response to Palestinian moves to join the International Criminal Court.
Palestinian authorities have delivered documents to United Nations headquarters in New York, requesting membership of the Rome Statute of the ICC in The Hague, and other global treaties.
The ICC was set up to try war crimes and crimes against humanity, such as genocide.
The Palestinian envoy to the UN, Riyad Mansour, says the move aims to prosecute Israelis for what the Palestinians consider to be war crimes committed on their territory.
"It is an option that we are seeking in order to seek justice for all the victims that have been killed by Israel, the occupying power. The last group of them, more than 500 children in Gaza last summer, more than 3,000 children injured and a thousand more civilians killed and injured. This is only just to mention one example, of course we all know that according to their own statute, settlement is a war crime and therefore we will be seeking justice through this stipulation in their own statute."
The move is opposed by both Israel and the United States, with Israel reacting by freezing tax revenue transfers to the Palestinians.
Israel collects monthly tax revenues for the Palestinian Authority, and withholding them could leave the authority unable to pay workers' salaries.
Israel's Prime Minister, Binyamin Netanyahu, says the next monthly transfer, totalling around $120 million will be withheld.
"The Palestinian Authority has chosen to launch a confrontation with the State of Israel and we are not sitting idly by. We will not allow the dragging of IDF (Israel Defense Force) soldiers and IDF commanders to the International Criminal Court at the Hague. The ones who should face justice are the heads of the Palestinian Authority who entered an alliance with the Hamas war criminals. IDF soldiers will continue to defend the State of Israel with determination and might. Just as they defend us, we will defend them with the same determination and the same might."
Israel has temporarily withheld these revenues in the past.
In November 2012 it did so after Palestinian leader Mahmoud Abbas sought and obtained de facto statehood recognition at the UN.
Israel is also seeking ways to bring war crimes prosecutions against Palestinian leaders in retaliation for the move.
Yuval Steinitz, Israel's Minister of Strategic Affairs, says if the Palestinians sign on to the ICC, it will violate past agreements.
He compares Israel's money transfer freeze to Western sanctions on Iran.
"Both sides should respect previous commitments and once the Palestinians are violating all the basic commitments of the Oslo accords and they are taking unilateral steps, Israel will react. And by the way it's exactly like the world has frozen Iranian money in order to pressure Iran to fulfil its international obligations."
The Australian Friends of Palestine Association says the money collected by Israel belongs to the Palestinians.
The group's Bassam Dally describes the move as a cruel and punishing act towards Palestinians.
"The Palestinian economy is fragile. Palestine depends heavily on foreign aid, and this money that it collects, taxes and other things that entails. What this would mean is that people's wages are not going to be paid. It means the current government is going to be in big trouble financially and this is what Israel wants. It wants to punish the Palestinians every time they want to try and resolve the issues that they have with Israel."
Meanwhile, Palestinian President Mahmoud Abbas says he's discussing with Jordan plans to resubmit a draft UN Security Council resolution that failed to win enough votes last week.
Jordan remains a member of the Security Council while several other countries with revolving membership, such as Australia, were replaced over the New Year.
The Palestinians hope these states will be more sympathetic to their resolution demanding an Israeli withdrawal from occupied territories and independence by 2017, although the veto-wielding United States is likely to vote 'No' again, as it did on December 30.
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