Biden raised the issue toward the end of a 45-minute phone call on Saturday and proposed that Norway act as an intermediary to safekeep the contested amount of tax revenue that Israel says would reach Hamas in Gaza, the report said on Thursday. These funds would remain with Norway until a suitable arrangement could be found.
A US official described the conversation as one of the most "frustrating" exchanges between the two leaders since the start of Israel’s war on Gaza. Netanyahu said he did not trust Norway’s proposal, while Israel’s financial minister has opposed releasing any funds at all. Biden insisted that Netanyahu accept Norway’s proposal, saying it was backed by the US.
The Palestinian Authority has refused to accept a partial transfer thus far. The White House fears this may cause the authority to economically collapse and further escalate the violence in the West Bank if the Palestinian Authority cannot pay the salaries of its security forces. A US official said the Palestinian Authority would accept a partial transfer if the remainder meant for Gaza was kept in Norway, the news outlet reported.