"I'd say, 'You'll get money, but we're not paying you until we make a deal".
In her statement, Nauert called the decision consistent with concerns about "Palestinian attempts to prompt an investigation of Israel by the International Criminal Court". 123 nations belong to the organization, which has indicted more than three dozen people during its history.
ICC judges and prosecutors would be barred from entering the U.S. and their funds in the USA would be targeted.
The ICC is considering opening an investigation into alleged war crimes by American troops and intelligence officials during the war in Afghanistan, as the 17th anniversary of the USA invasion approaches.
Husam Zomlot, until recently posted to DC as the Palestinian envoy, said the closure would not deter Palestinians from seeking a state with East Jerusalem as the capital.
Bolton described the ICC as a threat to United States sovereignty and national security.
The PLO mission in Washington served as the de facto Palestinian embassy in the United States.
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John Bolton threatens ICC with sanctions in virulent attack
Bush, renounced the signature, citing fears that Americans would be unfairly prosecuted for political reasons . President Bill Clinton signed the Rome Statute that established the court, but his successor, George W.
He called the ICC "unaccountable" and "outright dangerous" to the United States, Israel and other allies, and said any probe of U.S. service members would be "an utterly unfounded, unjustifiable investigation".
The US has threatened sanctions against the International Criminal Court if it goes ahead with prosecutions against Americans.
The United States did not ratify the Rome treaty that established the ICC during the presidency of Republican George W. Bush. He unloaded on the "illegitimate" International Criminal Court and warned its judges they will pay a stiff price if they go after U.S. troops in Afghanistan, reports the New York Times.
"This unsafe escalation shows that the U.S.is willing to disband the worldwide system in order to protect Israeli war crimes and attacks against the land and people of Palestine, as well as against peace and security in the rest of our region", Hanan Ashrawi, a PLO executive committee member, said in a statement.
The latest submission came a day after the U.S. confirmed it would close the PLO's office in Washington, the highest Palestinian representation in the country, amid worsening relations between the two. "We will do the same for any company or state that assists an ICC investigation of Americans".
The U.S. Defense Department objected to the possible probe and said it was committed to complying with the laws of war. United Nations ambassador Nikki Haley said the Palestinians' major demand - for millions of their refugees and descendants to return to lost homes in Israel - should be ruled out, and called for increased pressure on Palestinian Authority President Mahmoud Abbas.The US has also moved its embassy from Tel Aviv to Jerusalem.