The US will close the Palestine Liberation Organisation’s mission in Washington, the state department says.
A statement said PLO leaders had failed to engage with US efforts to bring about peace with Israel and attempted to prompt an investigation of Israel by the International Criminal Court (ICC).
A senior Palestinian official called the decision a “dangerous escalation”.
“The PLO has not taken steps to advance the start of direct and meaningful negotiations with Israel,” the state department said on Monday.
“To the contrary, the PLO leadership has condemned a US peace plan they have not yet seen and refused to engage with the US government with respect to peace efforts and otherwise.”
The statement also cited Palestinian efforts to get the ICC to prosecute Israelis for alleged violations of international laws and norms regarding the treatment of people and property in the occupied West Bank and Gaza.