The spokesman for the Palestinian presidency, Nabil Abu Rudeina, said Feb. 27, “It would have been better that Iran transfer the funds through official channels to the PLO Martyrs and Prisoners Foundation, rather than resorting to informal and circuitous routes. This is a violation of the law and unacceptable interference in internal Palestinian affairs.”

Fathali also spoke of communicating with these families through the websites of the Committee for the Support of the Resistance in Palestine and the Iran-affiliated Shahid Palestine foundation , where the families will be able to fill out forms.

The PA expressed its displeasure after Iranian Ambassador to Lebanon Mohammad Fathali explained at a press conference Feb. 24 that Iran will “pay an amount worth $7,000 to every family of a martyr of the intifada in Jerusalem, and $30,000 to every family whose house is demolished during the intifada by the occupation.”

The announcement from Ali Larijani came during a Feb. 13 meeting with delegations from Palestinian factions (Fatah, Hamas, Islamic Jihad, Popular Front for the Liberation of Palestine, Democratic Front for the Liberation of Palestine and al-Saiqa) in Tehran, on the sidelines of the celebrations highlighting the 37th anniversary of the Islamic Revolution.

RAMALLAH, West Bank — Ties between the Palestinian Authority and Iran have entered a new crisis, initiated by Iran's parliament speaker announcing his country’s intention to provide financial aid to the families of every Palestinian killed in the intifada.

PLO Executive Committee member Ahmed Majdalani, who was tasked by President Mahmoud Abbas with the Palestinian-Iranian ties dossier, told Al-Monitor, “The Palestinian resentment emanates from the fact that Iran gave no attention to the PLO, with which it refused direct cooperation, and from Iran’s reliance on individual mechanisms in the provision of support, which is unacceptable.”

Majdalani explained that the PLO consulted with the Iranian side about the financial aid payment mechanisms, but “Hussein Sheikholeslam, an adviser to Larijani, gave us an answer saying, ‘We do not trust the PA.’” He said he rejected "any doubt in our integrity and national credibility.”

Majdalani added, “The Iranian stance is unacceptable, and we consider it interference in Palestinian internal affairs. Yet we are keen to ensure that things do not get to the point of a rupture in Palestinian-Iranian ties.”

Abbas Zaki, a member of Fatah's Central Committee, told Al-Monitor, “The Palestinian people are in need of any help from any state to endorse the intifada. Iran had already supported the Palestinian people in Gaza in the face of Israel.” He added, “Iran has strategic ties and coordinates with some factions, such as Hamas and Islamic Jihad. The PA cannot receive funds from Iran, in light of the agreements concluded with Israel, and [the PA’s] inability to end the Oslo Accord.”

Zaki explained, “Iran is a powerful country in the region, and we cannot be hostile to it in light of its support for the Palestinian cause. Normal ties, but not strategic ties, can be established with it.”

The PA fears that Iran delivering the aid through Hamas, in light of the recent improvement in the ties between the two parties, will have an impact on the PA's own popularity.

Iran’s support for and alliance with Hamas have always angered the PA and Fatah. Fatah views this support as harmful to the Palestinian cause and the Palestinian people’s interests, and as a direct contributor to the current division. In March 2015, Fatah’s spokesman Osama al-Qawasmi accused Iran of asking Hamas and Islamic Jihad to hold marches in Gaza against Abbas, who supported Operation Decisive Storm in Yemen led by Saudi Arabia against the Iran-affiliated Houthis.

Mahmoud al-Zahar, a member of Hamas' political bureau, told Al-Monitor, “The PA does not want the martyrs’ houses to be renovated, so as not to be accused by Israel of receiving funds to support the intifada in light of the ongoing security coordination with Israel.” He added, “Iran said that it does not trust the PA, and many countries share the same opinion.”

Zahar noted, “The donors are the ones that decide which is the right party to receive the funds to support the resistance and martyrs’ families. Therefore, we respect and appreciate every bit of support for the resistance, be it through weapons, funds or renovation of the martyrs’ houses.”

For his part, political writer and analyst Talal Okal told Al-Monitor that there are several reasons behind the PA’s resentment of Iran, including Iran joining the Palestinian arena directly, bypassing the PLO to fuel the Palestinian intifada through the provision of financial support to the martyrs’ families, which the PA rejects. There is also the worsening rift between Iran and Saudi Arabia, which is the main financier for the PA treasury, according to Okal.

This crisis follows the PA's attempts to improve ties with Iran after the nuclear deal was concluded in July. In this context, Majdalani visited Tehran on Aug. 9 to start managing a political dialogue with Tehran and promote bilateral ties between the two parties.

On the impact of the Saudi support for the PA treasury on the PA position toward Iran, Majdalani said, “Palestine is not part of any of the regional axes, and the relationship between Saudi Arabia and Iran has been tense for a long time. We did not say that we are in favor of one country at the expense of the other, because we are keen to have balanced ties with all parties.”

He added, “Our resentment toward Iran stems from its bypassing the PLO and [impairing] our internal security and national dignity.” The attempt to portray Palestine as having a bias in favor of Saudi Arabia is unjust and unacceptable, he added.

Zahar denied any conditional Iranian support, saying, “The Iranians have never set any conditions on supporting Palestine, and we reject any conditional support and refuse to engage in a game of alliances that would weaken our strength in the face of the occupation.”

On the impact of regional developments on the decision-making within the PA — which receives monthly sums from Saudi Arabia for a total of $242 million in 2015 — and especially Saudi Arabia’s decision to halt its funds for Lebanon, Okal said, “The Palestinian cause has nothing to do with bickering like that in Lebanon. This is why the PA is seeking to establish good relations with everyone, including Iran and Saudi Arabia, provided that it would be the concerned party, rather than Hamas.”

Despite the PA’s declared resentment of Iran, the PA does not aspire to any escalation in the standoff with Tehran, nor a rupture of bilateral ties, which the PA has been keen to promote since the nuclear deal was signed.