Secretary of State Hillary Clinton called Israel's behaviour "insulting" after it approved 1,600 new homes last week at a settlement in the Jerusalem area on the very day Vice President Joe Biden was there to set a seal on relaunched negotiations.

Biden told Reuters on Friday he believed Netanyahu was sincere in seeking a deal to give the Palestinians a state and that the premier understood that Israel had "no alternative".
Reuters AlertNet - "Insulted" by Israel, U.S. scrambles to save talks