Israel provokes Palestinians and US by going ahead with new settlements Israel aggravated both the US and the Palestinians today by announce plans to build 238 new accommodation units in East Jerusalem, a move that throw into doubt previously fragile peace negotiations.

Magazine of the housing plans comes at a time when deliberations between the Israelis and Palestinians being brokered by the US are stalled.

The Palestinians today accused the Israeli prime minister, Binyamin Netanyahu, of putting settlements before peace. A senior US management official, respond to media information of the new house plan, said: "We saw that story as well and we are working to verify that it occurred."

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