The London-based Dar al-Hiyat newspaper reported on Tuesday that Iran would allocate $250 million to the Palestinian Authority to replace the funding withheld by Israel and the United States. Hamas leader Khaled Mashaal (right) said, “Iran has announced that it would support the new Palestinian government and the Palestinian people.” The European Union plans to transfer 120 million euros to the Palestinian Authority to counter fears that Iranian funding would further radicalize the Palestinian Authority.