The US decision to cancel more than $200 million in aid for Palestinians in the Gaza Strip and West Bank demonstrates Washington is "anti-peace," the Palestinian envoy said Friday, condemning the move as "blackmail."

"This administration is dismantling decades of US vision and engagement in Palestine," Husam Zomlot, head of the Palestinian General Delegation to the United States said in a statement, referring to President Donald Trump's administration.

"After Jerusalem and UNRWA, this is another confirmation of abandoning the two-state solution and fully embracing (Israeli Prime Minister Benjamin) Netanyahu's anti-peace agenda. Weaponizing humanitarian and developmental aid as political blackmail does not work."