"The isolation of the Palestinian people is politically-motivated and therefore, the solution must be political," Erekat said in an interview with local radio "Voice of Palestine."

"The government must honor the Arab peace initiative and the previous Palestinian-Israeli agreements," he added. He also urged the Hamas-led cabinet to heed President Mahmoud Abbas' moderate views of opening peace talks with Israel and abide by previous deals.

Arab leaders adopted the peace initiative at a 2002 summit in Beirut, which says that Arab countries will normalize relations with Israel if the Jewish state withdraws from Arab territories taken in the 1967 Arab-Israeli war and an independent Palestinian state is established.

Israel has rejected the plan.

Hamas, or the Islamic Resistance Movement, has formally called for Israel's destruct.

The new Palestinian government led by the radical Islamic group has been facing severe financial shortages due to the west's cutoff of aid and political isolation.

The United States and the European Union suspended direct financial support to the Palestinian government after Hamas took office in March, urging the group to recognize Israel's right to exist, renounce violence and accept previous Palestinian-Israeli agreements.

Israel has also halted the monthly transfer of about 50 million U.S. dollars of tax revenues it collects on behalf of the Palestinians since Hamas won the parliamentary elections in January.

The Palestinians have been largely dependent on financial aid from the West.