Ties Between Israel and US 'Worst in 35 Years'

From BBC News

Ambassador Michael Oren reportedly made the remark to Israeli diplomats

Israel's ambassador to the US has said relations between the two are at their lowest for 35 years, Israeli media say.

Last week, Israeli officials angered visiting US Vice-President Joe Biden by announcing the building of 1,600 new homes in occupied East Jerusalem.

The US said it was waiting for a formal Israeli response to its concerns.

Palestinian leaders say indirect talks with Israel are now "doubtful". Israel's PM said Jewish settlements did "not hurt" Arabs in East Jerusalem.

Addressing Israel's parliament, the Knesset, 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.

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