Tillerson said Trump’s decision would depend on how it is seen by governments in the region and whether Israel views it as a helpful move in the peace process.
Mahmoud al-Zahar, a critic of Israel, said the policy document announced by the Islamist Palestinian group last week did not contradict its founding charter.
The legislation still has to go through further drafting by the justice ministry and pass several votes in parliament in what could be a lengthy process.
Overall, the impact of UNSC resolution 2334 condemning Israel’s occupation is likely to be greater than it would have been if Tel Aviv had not reacted so petulantly.
The central issues to be resolved in the conflict include borders between Israel and a future Palestinian state, the fate of Jewish settlements in the West Bank, the fate of Palestinian refugees and the status of Jerusalem.