Palestinian Hamas-led cabinet hailed yesterday an Iranian decision to provide financial aid to the cash-strapped cabinet amid financial cut and diplomatic isolation.

Cabinet spokesman Ghazi Hamad told reporters that the cabinet praised the Republic of Iran for its support to the Palestinian people and their newly-installed government.

Iranian Foreign Minister Manouchehr Mottaki announced on Sunday that Iran would donate 50 million U.S. dollars to the Hamas-led new Palestinian government in face of aid cuts.

With such aid, the new cabinet will overcome a severe financial crisis, said Hamad.

"The Iranian decision came in this sensitive time to break the unfair siege imposed on the Palestinian people and their government," said Hamad, adding that he hoped other countries would follow suit and help the Palestinians.

The spokesman's comment came after the Palestinian cabinet issued a statement on Sunday night, in which it welcomed the Iranian decision to support the Palestinian people.

The United States, Europe and Israel had cut off direct aid to the Palestinian government and disconnected political ties with the Hamas-led cabinet since Hamas, which is sworn to Israel's destruction, refused to recognize Israel, renounce violence and accept previous Palestinians-Israeli agreements.