Israel's decision comes in response to Palestine's request to join ICC to seek justice for the victims of Israeli occupation.
Under the US legislation, if Palestinian authorities will launch any criminal case against Israel in ICC, the United States immediately halts financial assistance to Palestine, which currently amounts to $400 million annually.
According to the earlier media reports, Israeli Authorities decided Sunday to freeze $127 million in tax revenues for Palestinians as yet another responsive measure to Palestine's ICC bid.
On December 31, 2014, Palestinian President Mahmoud Abbas signed a request to join the ICC, as well as several other international treaties, after UN Security Council failed to pass the resolution on the creation of an independent Palestinian state on December 30.
The UN Security Council rejected the Palestinian statehood resolution, with eight nations, including Russia, supporting the document, the United States and Australia voting against it and five countries abstaining.
The UN regulations state that, in order to be adopted, a document must be supported by at least nine nations, with all five permanent representatives of the UN Security Council (China, France, Russia, the United States and the United Kingdom) voting in favor.
The failed resolution stipulated the creation of a Palestinian state in the West Bank and East Jerusalem, occupied by Israel in 1967, with Tel Aviv withdrawing all of its forces by the end of 2017.
