US envoy warns of Palestinian collapse

The United States ambassador to Israel, Martin Indyk, has warned that the Palestinian Authority is beginning to fall apart and the Palestinian economy is on the brink of collapse.

Urging Israel to lift its economic blockade on the Palestinian territories, he warned that the current violence could explode.

He called on both sides to show show restraint.

Mr Indyk also made it clear that Washington would not support tougher Israeli actions to put down continuing Palestinian violence, just as it would not support Palestinian approval for attacks on Israelis.

From the newsroom of the BBC World Service