Hamas has welcomed Qatar’s decision to send $480 million (£366 million) in funds to Palestinians in the West Bank and Gaza after a weekend of rocket fire and air strikes ended in ceasefire.

The Gulf state said $300 million (£230 million) would support health and education programmes run by the Palestinian Authority, AP reported.

The remainder will be spent on UN humanitarian aid programmes and providing electricity in Gaza, which suffers from chronic power shortages.

Ismail Haniyeh, Hamas’s supreme leader, said: “This honourable decision is a continuation of the unwavering Qatari stances that support the Palestinian people politically and financially, in addition to defending the Palestinian rights at international platforms.”

His organisation is listed as a terrorist organisation by the US, European Union and Israel.

25 people were killed in Gaza and four civilians in southern Israel during the violence over the weekend.

The Qatari money come as the Palestinian Authority faces a cash crisis after refusing bank transfers of the tax funds collected by Israel on the Palestinians’ behalf.

Israel began deducting money that it says the PA gives to families of Palestinians killed or jailed while fighting the IDF or Israeli civilians, saying it is a reward for violence.

Husam Zomlot, the Palestinian envoy in London, told the JC last week that they were social welfare payments to families affected by conflict.

The Palestinian Authority has refused to accept any tax transfers from Israel until the funding is fully restored.