Israel’s Muslim-Arab neighbors in the Gulf have been given reason to be nervous about putting their faith in a U.S.-led, anti-Iran coalition with Israel at the forefront.

The state says it is prepared to present the financial agreements with the Palestinian Authority to the High Court of Justice, but only "behind closed doors, and only to the court."

Senior authorities are deceiving the public and their elected representatives because they know that any financial ties with the Palestinian Authority expose Israel to the risk of involvement in money laundering, and even funding terrorism.

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A senior adviser to the country's supreme leader also warned Tehran will directly respond against Israel should its security be targeted.