US President Barack Obama led world powers on Tuesday in criticising Israel's decision to build 1,300 settler homes in east Jerusalem, warning it risks wrecking an already fragile peace process with the Palestinians. "This kind of activity is never helpful when it comes to peace negotiations," Obama told reporters during a visit to Indonesia.
"I'm concerned that we're not seeing each side make the extra effort to get a breakthrough that could finally create a framework for a secure Israel living side-by-side in peace with a sovereign Palestine," the US leader said. But he said he would continue working on the process despite the deepening impasse. "We're going to keep on working it though because it is in the world's interests," he said.
In the face of the criticism, Israel insisted it would never limit construction in its "capital," having annexed east Jerusalem to reunite the Holy City in a move not recognised by the international community. "Israel sees no connection between the peace process and the planning and building policies in Jerusalem that have not changed for the last 40 years," said a statement from Prime Minister Benjamin Netanyahu's office.