As this year's Ramadan continues to be written in blood, Prime Minister Netanyahu's office announced that it will reduce the amount of tax funds transferred monthly to the Palestinian Authority. The statement, released on Friday, comes as part of a measures following the deadly terror attacks of last week.
"Netanyahu has ordered that the entire amount of support for terrorists and their families be deducted from the tax revenues that Israel transfers monthly to the Palestinian Authority," his office said.
Israel transfers around $127 million in customs duties, levied on goods destined for Palestinian markets that transit through Israeli ports, monthly.
The statement from Netanyahu's office accused the PA of supporting the families of militants with funds transferred "by various laundering methods".
An Israeli official put the amount of money at "tens of millions of shekels."
The decision came hours after Michael Marc was killed in a teror attack, and a day after 13-year-old Hallel Yaffa Ariel was stabbed to death in her home in Kiryat Arba.
It was announced at the same time the military said it was imposing a closure on and around the city of Hevron.
"Israel believes that the encouragement of terrorism by the Palestinian leadership — in the form of both incitement and payments to terrorists and their families — constitutes incentive for murder," the statement from Netanyahu's office read.
AFP contributed to this report.