Iran said Sunday it would give the Palestinian Authority $50 million in aid, moving in for the first time with money after the United States and Europe cut off funding to the Hamas-led government.

Iran has long had close ties to the Islamic militant movement Hamas and is believed to have given money to the movement in the past – though the Shiite clerical-led government in Tehran has denied that, saying its support has only been moral.

But the new money, if given, would be the first time Iran has provided funds to the Palestinian Authority, the government in the West Bank and Gaza Strip that until now was led by the moderate Fatah movement, which carried out peace negotiations with Israel, a policy shunned by Iran.

Iranian Foreign Minister Manouchehr Mottaki announced the aid package Sunday during a conference held in Tehran in support of the Palestinians.