JERUSALEM – Iran defied America and Europe yesterday when it pledged to give almost $53 million to the new Hamas-led Palestinian Arab government.

The one-time payment from Tehran, which was announced by the Iranian foreign minister, Manouchehr Mottaki, will go some way to plugging the gap in Palestinian finances caused by the recent loss of Western aid.

Israel vowed to stop the money getting through – a viable proposition given how heavily Palestinian Arab financial institutions rely on Israel.

Mr. Mottaki appeared to relish announcing the donation, which will fuel the standoff between the West and Iran over Tehran’s nuclear ambitions. “I am honored to announce that Iran has donated $50 million to help the Palestinian nation,” he said in a televised speech.

The pledge comes days after President Ahmadinejad of Iran seemed to threaten Israel with a nuclear attack when he described it as a “rotten, dried tree” facing annihilation by “one storm.”

Washington and Brussels cut about $60 million of monthly support to the Palestinian Administration because they viewed Hamas as a terrorist organization.

But Iran and other Muslim countries regard Hamas as a sound Islamic movement that is right to advocate armed resistance against Israel.

Saudi Arabia, the United Arab Emirates, and Kuwait responded to an appeal for aid for the Palestinian Arabs with about $88 million – only enough to help the Hamas government settle its bills for about two months. Appeals to other large Arab countries such as Iraq or Egypt failed to generate any funds because to do so would have undermined their close links with America.

Economic experts believe the Palestinian Administration to be broke, unable to meet its monthly commitments to pay the wages of civil servants and its security forces. Policemen and security officers have begun to demand payment and to express their anger against Hamas and their loyalty to Fatah.