US Envoy Cancels Trip Amid US-Israel Feud

Palestine condemns move

(NEWSER) - In a move sure to ratchet up Israeli-Palestinian tension even further, Israel gave the OK today to construct 1,100 new housing units in east Jerusalem. Israel’s Interior Ministry says construction can begin after 60 days, a period that is mandatory for comments from the public but largely a formality, the AP reports. While the Palestinians say east Jerusalem is their future capital, and have called for a halt to all settlement construction there, Israel says the area is a part of its own capital, an undivided Jerusalem. More»

Official gives details of proposed deal

(NEWSER) - Despite the angry-sounding words recently exchanged between President Obama and Israeli Prime Minister Benjamin Netanyahu over planned Israeli settlements in East Jerusalem, Netanyahu has reportedly agreed to push for a new settlement freeze. Under the proposed deal, Netanyahu will ask his cabinet to freeze construction for just 90 more days so that Palestine will resume peace talks. Once a peace agreement is signed, the US will give Israel a $3 billion package of security incentives and fighter jets, the New York Times reports. More»

(NEWSER) - Amid intense US-Israeli negotiations over settlements, Israel today brushed off Washington’s request to stop an American millionaire's housing project in East Jerusalem, the Jerusalem Post reports. Palestinians have complained that it would change demographics in the Arab-dominated area. But Obama "had crossed a red line" in asking Israel to cease building in Jerusalem, said sources close to Prime Minister Benjamin Netanyahu. More»

... after 7 Israelis were killed in morning attacks

(NEWSER) - Israel retaliated over terror attacks earlier today by launching airstrikes into Gaza that claimed the lives of six people, CNN reports . Palestinian authorities say the strikes, just west of Rafah near Egypt's border, killed five members of Popular Resistance Committees and the son of one member. Israeli defense forces say the members organized today's terror attacks with the hope of kidnapping an Israeli soldier or civilian. Seven Israelis were killed. More»

Palestine not happy with latest announcement

(AP) - Israel's interior minister gave final authorization to build 1,600 apartments in disputed east Jerusalem and will approve 2,700 more in days, officials say, detailing a plan that could complicate diplomatic efforts to dissuade Palestinians from declaring statehood at the United Nations. The announcement drew immediate criticism from the Palestinians, and from Israel's leading anti-settlement group, which accused the government of seizing on mass protests over housing costs to give economic justification to the always explosive issue of building in the holy city. More»