The US warned Palestinian President Mahmoud Abbas of the dissolution of the Palestinian Authority, and described it as an ‘extreme step’ which could fundamentally alter relations between Washington and Ramallah.US State Department Spokesperson Jen Psaki told reporters in Washington that such a move would have ‘grave implications’ on the relationship between the United States and the Palestinians, including American assistance, the Palestinian News Network has reported.

She added, ‘A great deal of effort has gone into building Palestinian institutions, by Palestinians as well as the international community, and it would certainly not be in the interests of the Palestinian people for all of that to be lost. We — the United States have put millions of dollars into this effort. It would obviously have very serious implications for our relationship, including our assistance going forward.’

Psaki expressed hope that the Palestinian and Israeli parties would agree to extend the negotiations.

Psaki emphasized that the US Secretary of State John Kerry is willing to return to the region to continue with the efforts to salvage the peace talks.