President Mahmoud Abbas swore in a Palestinian unity government Monday in a reconciliation deal with Hamas Islamists that set Israel on a collision course with Washington over U.S. pledges to work with the new administration while Israel shunned it.

Abbas, whose Palestinian Authority in the Israeli-occupied West Bank depends on foreign aid, appeared to have banked on Western acceptance of a 16-member cabinet of what he described as politically unaffiliated technocrats.

Setting a policy in line with U.S. and EU demands, the Western-backed leader said his administration would continue to honor agreements and principles at the foundation of a peace process with Israel.