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Benjamin Netanyahu is clearly feeling lucky. As his skirmish with the Obama Administration over Israel's settlement activity in East Jerusalem entered its second week on Tuesday, the Israeli Prime Minister was pushing back against Washington's demands. U.S. Secretary of State Hillary Clinton has put the onus on Israel to "demonstrate its commitment" to the peace process by reversing a plan to build new housing units in East Jerusalem (occupied by Israel since 1967); declaring its readiness to hold substantial negotiations with the Palestinians on all final-status issues (including Jerusalem, whose control by Israel Netanyahu has repeatedly insisted...

Author: /time Magazine | Title: Pressure Grows on U.S. to Tamp Down Its Spat with Israel | 3/17/2010 | See Source »

...been to berate him over the provocation during Biden's visit, mounting pressure from Washington on a wider range of issues may turn the domestic political tide in his favor. Netanyahu last year strengthened his domestic political position by defying the Obama Administration's demand for a complete settlement freeze as a step toward resuming peace talks. And besides his own right-wing coalition urging him to stay the course, a wider range of Israeli leaders may be leery of allowing Washington to dictate Israel's actions. (See pictures of the Palestinian "Day of Rage...

Author: /time Magazine | Title: Pressure Grows on U.S. to Tamp Down Its Spat with Israel | 3/17/2010 | See Source »

...Washington that U.S. national interests across the region are imperiled by a failure to resolve the Israeli-Palestinian conflict in a manner minimally acceptable to the Arab world - a two-state solution based on the 1967 borders, with East Jerusalem as the Palestinian capital. After the East Jerusalem settlement announcement, Biden was reported by Israeli media to have told Netanyahu behind closed doors, "What you're doing here undermines the security of our troops who are fighting in Iraq, Afghanistan and Pakistan. That endangers us, and it endangers regional peace...

Author: /time Magazine | Title: Pressure Grows on U.S. to Tamp Down Its Spat with Israel | 3/17/2010 | See Source »

...Secretary of State Hillary Clinton, after publicly announcing the substance of a 42-min. dressing down of Netanyahu by phone, reportedly sent the Prime Minister a list of steps Washington expected him to take in order to repair relations. Those steps are said to include investigating the Jerusalem settlement announcement; reversing the construction approval; making substantial gestures toward the Palestinians such as releasing a large number of Palestinian prisoners, withdrawing troops from additional areas in the West Bank or easing the siege of Gaza; and publicly declaring Israel's intent to negotiate with the Palestinians on all of the conflict...

Author: /time Magazine | Title: The U.S.-Israel Spat Over Settlements: Risks for Both Sides | 3/16/2010 | See Source »

...issue can't be easily fudged. Even if Netanyahu quietly undertakes to refrain from new construction in East Jerusalem, the move would not go unnoticed for long - and would prompt right-wing demonstrations and agitation. The right-wing settler movement is well entrenched in the government bureaucracy responsible for settlement construction, and precedent suggests they would find a way to continue building regardless even of any secret promises to the U.S. by Netanyahu. "Everything in East Jerusalem is under a magnifying glass and involves too many people and politics," a senior government source told TIME. "A de facto construction freeze...

Author: /time Magazine | Title: The U.S.-Israel Spat Over Settlements: Risks for Both Sides | 3/16/2010 | See Source »

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