The shine is off US foreign aid beneficiary
Israel’s ambassador to the US has said that relations between the two countries face their worst crisis for 35 years, Israeli media have reported.
Last week Israeli officials announced the building of 1,600 new homes in occupied East Jerusalem while US Vice-President Joe Biden was visiting.
The move was seen as an insult to the US and Palestinian leaders say indirect talks with Israel are now “doubtful”.
But Israel’s PM said Jewish settlements did “not hurt” Arabs in East Jerusalem.
Addressing Israel’s parliament, the Knesset, Prime Minister Benjamin Netanyahu said he wanted peace negotiations and hoped the Palestinians would not present “new preconditions” for talks.
“No government in the past 40 years has limited construction in neighbourhoods of Jerusalem,” he said.
“Building these Jewish neighbourhoods in Jerusalem does not hurt the Arabs of East Jerusalem or come at their expense.”
Meanwhile, EU foreign policy head Baroness Ashton, on a Middle East tour, said Israel’s decision had put the prospect of indirect talks with the Palestinians in jeopardy.