The United States is expected to lift an embargo on direct assistance once the new Palestinian government is inaugurated, said a U.S. envoy on Saturday.

During talks with Palestinian President Mahmoud Abbas in Ramallah, Jacob Walles, U.S. Consul general in Jerusalem, said that the United States is expected to reengage with the new government.

He also predicted "some announcements" in Washington about lifting the economic sanctions, which persisted even after Fatah joined Hamas-led unity government in March.

In the wake of the takeover of the Gaza Strip by Hamas, Palestinian National Authority (PNA) Chairman Mahmoud Abbas on Thursday dissolved the Fatah-Hamas unity government.

A new emergency Palestinian government headed by Salam Fayyad will be sworn in at 1 p.m. (1000 GMT) on Sunday.

The fighting between Hamas and Fatah in the Gaza Strip ended late Thursday after Hamas completed its takeover of all the important PNA institutions there, including Abbas' local headquarters and the offices of all the PNA security forces.

Scores of Fatah security commanders and political leaders fled to the West Bank and Egypt as Hamas announced that it had taken full control of the Strip.

On Friday, Abbas asked Salaam Fayad, the independent and internationally respected former finance minister, to form a new cabinet that would replace the Hamas-led unity government.

Source: Xinhua