“He said [settlers] are building in their land. Son of a dog, they are building in their land? He is a settler and his family members are settlers.”
Mr Friedman lives in the US ambassador’s official residence in Herzliya, north of Tel Aviv, but before his appointment he donated and fundraised for at least two settlements.
In a speech in Jerusalem he referred to Mr Abbas’s remarks by saying: “antisemitism or political discourse? Not for me to judge, I will leave that up to you.”
Palestinians have been officially boycotting ties with the US administration since President Trump recognised Jerusalem as Israel’s capital last November.
They did not attend a White House meeting on Gaza last week and have declared they would reject Mr Trump’s as-yet unannounced peace plan.