RAMALLAH, West Bank (AP) — The Palestinian president is moving forward with his plan to seek upgraded observer status at the United Nations next month, despite American and Israeli threats of financial or diplomatic retaliation, officials said Sunday.

The decision sets the stage for a new showdown between Israel and the Palestinians at the world body, following last year’s attempt by the Palestinians to seek status as a full member state. Although that initiative failed to pass the U.N. Security Council, it caused months of diplomatic tensions with Israel.