News from Jerusalem

Clinton said the announcement to construct these new homes sent a "deeply negative signal" about Israel's ties to its top ally.

The Middle East Quartet made up of the European Union, the United States, Russia and the United Nations also slammed Israel in a statement saying it “condemns Israel's decision to advance planning for new housing units in East Jerusalem." The statement also said "The Quartet has agreed to closely monitor developments in Jerusalem and to keep under consideration additional steps that may be required to address the situation on the ground"

US frustration with Israel’s announcement of the housing project as Vice President Joe Biden was on a visit to Israel was delivered by State Department spokesman Philip Crowley who told reporters that Israel’s move ran "counter to the spirit of the vice president's trip" saying also  that it had harmed “the bilateral relationship.”

After speaking with Netanyahu Hillary Clinton heaped further scorn on the Jewish state in a CNN interview saying "The announcement of the settlements, the very day that the vice president was there, was insulting," adding "It was just really a very unfortunate and difficult moment for everyone, the U.S., our vice president who had gone to reassert America's strong support for Israeli security, and I regret deeply that that occurred and made that view known."

Since Obama came to office relations with Israel have been strained, and Biden’s trip was intended as a fence-mending mission. Now it has led to the biggest crisis between the two countries in two decades.