The Gaza electricity distribution company says it has not yet been informed of the Israeli decision to slash electricity, but warned of "serious deterioration" if the cuts went into effect.
Netanyahu stressed that "Israel has no interest in an escalation" of tensions with Gaza.
"In February, a United Nations watchdog group released a report showing screenshots from the Facebook pages of 40 UNRWA school employees in Gaza and other parts of the Mideast that it said 'incite to jihadist terrorism and anti-Semitism, including by posting Holocaust-denying videos and pictures celebrating Hitler, '" the Times recounted.
Israeli Prime Minister Benjamin Netanyahu broke from the Government of Israel's longstanding policy and stated that UNRWA, the internationally funded United Nations body dedicated to providing health, education, welfare and legal services to Palestinian "refugees", should be shut down.
Hamas may not be in a position to initiate a conflict with Israel in the first place. Hamas has accused Abbas of trying to turn the screw on them to make political concessions.
The UN agency for Palestinian refugees on Friday said it has protested to the Islamist movement Hamas after finding a tunnel under two of its schools in the Gaza Strip. "UNRWA has always been criticized by Israel for aspects of its handling of relations with Hamas, and Israel has claimed that some of UNRWA's Palestinian employees support terrorist activities and spread anti-Semitism online".
"Pulling no punches about the potentially enormous impact of both the crisis with Abbas and the increasingly untenable position of Hamas' Qatar-based leadership, the article asserted that Hamas may no longer be able to sustain itself".
Gaza's health ministry spokesman Dr Ashraf al-Qidra warned of "dangerous consequences for the sick and public health" if electricity is further reduced.
Schanzer said the present "is a perilous time for Hamas". It is also discussing a Muezzin law which would restrict calls to prayer to early or late hours for noise control (Israel National News 08/03/2017, The Independent 07/03/2017).
"UNRWA has taken very few steps to detect and eliminate terrorists from the ranks of its staff or its beneficiaries", James Lindsay, a former UNRWA official, said in a 2009 report, "and no steps at all to prevent members of terrorist organizations, such as Hamas, from joining its staff".
The Israeli cabinet decision would see a reduction of about 45 minutes to the amount of time every day during which Gaza receives electricity, Israeli media reported.
UNRWA had faced fierce criticism in Israel in recent days after it announced that it had discovered a Hamas tunnel under two of its boys schools in Maghazi camp in the Gaza Strip on June 1.
The tunnels were also a prominent theme in the remarks of House Foreign Affairs Committee Chairman Ed Royce (R-CA) at a congressional subcommittee meeting on Tuesday.