The European Union foreign policy chief is chiding both Israel and the Palestinians for raising tensions against one another with provocative actions.

Federica Mogherini on Tuesday said steps by both sides "could aggravate the already tense situation."

She singled out Israel's decision to withhold tens of millions in tax revenues from the Palestinians, saying it "runs counter to Israel's obligations," and puts EU initiatives to benefit the Palestinians at risk.

The EU criticism came in the wake of similar warnings from the Obama administration on Monday.