The United States has warned that Israel will see a “massive” negative impact if the Palestinian Authority collapses, as Washington again pressed its ally to let revenue flow, AFP reports.

“We have made clear to the government of Israel in some very direct conversations that there is nothing that could be more counter to the strategic interests of Israel than the collapse of the Palestinian Authority,” State Department spokesman Matthew Miller told reporters.

While acknowledging shortcomings in the Palestinian Authority, he said the Ramallah-based body had helped maintain stability in the West Bank even as fighting has raged in Gaza, run for years by rivals Hamas.

“If you saw the Palestinian Authority collapse and instability spread across the West Bank, it’s not just a problem for the Palestinians,” he said, “it is also a massive security threat for the state of Israel.”

The World Bank recently warned that the Palestinian Authority’s fiscal situation has “dramatically worsened” with the risk of complete collapse.