I cannot imagine the US will not find some way to offer some assistance just because it allows them leverage to shape the negotiations to some degree. And more so the Europeans, who would be even less willing to totally cut off aid.

If the EU and US do cut aid there will be a negative effect. If Israel doesn't want to deal with them at all in terms of borders and movement of goods, the economy will stagnate. But as long as they are able to get some funding from the US and the EU and are able to negotiate to some degree with the Israelis and open up these borders then I think [recovery] is possible.