Palestinians have been threatened with the withdrawal of all US aid in a late night tweet from US President Donald Trump, even as the President’s son, Jared Kushner, remains charged with brokering an Israel-Palestinian peace.

The Palestinian leader Mahmoud Abbas had already declared the US had lost its authority in that regard after President Trump’s earlier announcement to recognise Jerusalem as the capital of Israel and to move the US embassy there.

Palestinians of course want East Jerusalem as their capital in any final peace with Israel.

Now, the aid threat has further inflamed anger.

Featured: Izzat Abdulhadi, head of the Palestinian delegation in Australia

Listen to the report on the ABC PM program.

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