Israeli Prime Minister Benjamin Netanyahu has praised the US government for passing a law that suspends some financial aid to Palestinians in the form of stipends paid to families of those killed or jailed in fighting with Israel.

The Taylor Force Act, named after an American killed in Israel by a Palestinian in 2016, was approved as part of a $1.3 trillion (£0.9 trillion) spending bill signed by President Donald Trump.

On Sunday, Mr Netanyahu called the law a “powerful signal by the US that changes the rules” by cutting “hundreds of millions of dollars for the Palestinian Authority that they invest in encouraging terrorism.”

The Palestinians say the families are victims of violence. Palestinian official Nabil Abu Rdeneh condemned the law, saying it doesn’t “allow for the creation of an atmosphere conducive to peace”.