(TELEGRAPH) — John Kerry, the US secretary of state, triggered an angry backlash from Israeli leaders on Sunday after warning Israel faces an economic boycott if it failed to reach a peace accord with the Palestinians.

The uproar came as Mr Kerry held cordial talks with his Iranian counterpart, Mohammad Javad Zarif in Munich at which the pair vowed to intensify nuclear diplomacy.

Ministers in Benjamin Netanyahu’s cabinet accused Mr Kerry of effectively endorsing “anti-Semitic” efforts to impose sanctions on Israel by issuing the warning.

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