Speaking in Beirut Wednesday, Secretary of State John Kerry said that the U.S. does not recognize the new unity government of Palestine, as that would imply it recognized the Palestinian state.
"We do not recognize the government of Palestine - that would mean we recognize a state," he said.
But Kerry also said the U.S. would continue to work with the new Palestinian unity government "as we need to" and will monitor daily its policies to ensure it "doesn't cross the line.”
The new unity government in Palestine will see President Mahmoud Abbas' Fatah work alongside Gaza-based Hamas, which is designated as a terrorist group by the U.S. The two groups have been divided since 2007.
Israeli Prime Minister Benjamin Netanyahu said Tuesday he was "deeply troubled" by the U.S. decision to maintain ties with the new unity government.