Israel threatens new punishments against Palestinians in retaliation for criminal court bid

Israeli leaders are threatening to take even tougher action against the Palestinians over their decision to join the International Criminal Court, a day after freezing the transfer of more than $100 million in tax funds.

Prime Minister Benjamin Netanyahu told his Cabinet on Sunday that Israel "will not sit idly by."

The Palestinians submitted their application last week to the ICC. The application is expected to be approved in about 60 days, clearing the way for them to pursue war crimes cases against Israel.

Netanyahu's minister for strategic affairs, Yuval Steinitz, said that if the Palestinians press forward with their efforts, Israel will have to consider further steps.

The Israeli tax transfers are essential for the cash-strapped Palestinian Authority.