Israel’s Netanyahu urges Britain to join Iran sanctions

Britain and Israel leaders

By Michael Holden and William James

LONDON (Reuters) – Israeli Prime Minister Benjamin Netanyahu urged “responsible nations” to join new sanctions against Iran on Monday during a visit to London, but Britain defended a nuclear deal sealed between major powers and Tehran.

Ahead of his talks with British Prime Minister Theresa May, Netanyahu said other nations should follow new U.S. President Donald Trump’s imposition of sanctions against Iran following a ballistic missile test.

“Iran seeks to annihilate Israel. It seeks to conquer the Middle East, it threatens Europe, it threatens the West, it threatens the world. And it offers provocation after provocation,” Netanyahu told May ahead of their meeting.

“That’s why I welcome President Trump’s assistance of new sanctions against Iran. I think other nations should follow suit, certainly responsible nations. I’d like to talk to you about how we can ensure that Iran’s aggression does not go unanswered.”

May’s spokeswoman said the British leader had repeated her backing for the nuclear deal with Tehran – which is strongly opposed by both Netanyahu and Trump – but said there was a need to “rigorously monitor” Iran’s behavior.

“The prime minister made clear that we support the deal on nuclear that was agreed,” the spokeswoman told reporters, when asked whether Britain was considering joining new sanctions.

“What happens now is that (the nuclear deal) needs to be properly enforced, and we also need to be alert to Iran’s pattern of destabilizing activity in the region.”

Earlier the spokeswoman said May would also tell Netanyahu that continued Israeli settlement activity in occupied lands captured in the 1967 Middle East War on which the Palestinians hope to create independent state undermined trust in the region.

“STRONG AND CLOSE ALLY OF ISRAEL”

Despite their differences, London has adopted a more positive approach to Israel since May became leader after last year’s vote to leave the European Union, echoing the more sympathetic tone set by Trump, with whom Britain wishes to secure a post-Brexit trade deal.

May told Netanyahu that Britain was a “strong and close friend of Israel”, and highlighted their co-operation in science, trade and security.

They agreed to set up a working group to develop trade ties both before and after Brexit, the spokeswoman said.

Last month Britain said it had reservations about a French-organized Middle East peace conference in Paris and did not back the final communique by 70 countries which reaffirmed that only a two-state solution could resolve the Israeli-Palestinian conflict. Its stance angered many EU members.

In December, Britain also scolded then U.S. Secretary of State John Kerry for a speech criticizing Israeli policy.

Netanyahu’s talks on Monday got off to an awkward start as he arrived before May was at her official Downing Street residence to greet him. Having entered her office alone, he came back outside minutes later for the customary handshake.

Small groups of pro-Palestinian and pro-Israeli protesters gathered outside Downing Street and Jeremy Corbyn, leader of Britain’s opposition Labour Party, said May’s stance on settlements was not good enough.

“Theresa May must make clear to the Israeli prime minister that the British government will stand unequivocally behind the rights of the Palestinian people,” said Corbyn, who once described members of Palestinian group Hamas and Lebanon’s Hezbollah as friends in comments he later said he regretted.

(Editing by Gareth Jones)

Israel interprets U.S. settlements statement as green light

rainbow over Israeli settlement

By Luke Baker

JERUSALEM (Reuters) – Israeli officials welcomed on Friday what they took as U.S. consent to expand existing settlements, after the White House reversed a long-standing policy of condemning building on occupied land.

In its first substantive announcement on the Israeli-Palestinian conflict, the Trump administration said it did not see existing settlements hampering peace with the Palestinians, although it recognized that “expansion of existing settlements beyond their current borders may not be helpful in achieving that goal.”

At one level, that appeared to be an attempt to rein in Prime Minister Benjamin Netanyahu, who has announced wide-ranging settlement expansion plans since the Jan. 20 inauguration, including around 6,000 new homes.

But on closer reading, the statement was a softening of policy from the Obama administration and even that of George W. Bush, because it does not view settlements as an obstacle to peace or rule out their expansion within existing blocs.

“Netanyahu will be happy,” a senior Israeli diplomat said in a text message. “Pretty much carte blanche to build as much as we want in existing settlements as long as we don’t enlarge their physical acreage. No problem there.”

Israel’s deputy foreign minister, Tzipi Hotovely from the right-wing of Netanyahu’s Likud party, interpreted it in a similar way, saying construction in the occupied West Bank and East Jerusalem, which the Palestinians want for their own state together with Gaza, would go on unhindered.

“It is also the opinion of the White House that settlements are not an obstacle to peace and, indeed, they have never been an obstacle to peace,” she said. “Therefore, the conclusion is that more building is not the problem.”

Israel seized the West Bank and East Jerusalem in the 1967 Middle East war. The 50th anniversary of the occupation, which Israel marks as a reunification of Jerusalem, is in June.

There was no immediate comment from the Palestinians.

DOUBLE BENEFITS

Since taking office, President Trump has largely kept quiet on the Israeli-Palestinian issue, making no comment in response to Netanyahu’s announcements for thousands more settler homes, a silence interpreted as endorsement. During the campaign, Trump said he would not interfere or push Israel to negotiate on a two-state solution to the conflict.

He has nominated David Friedman as ambassador to Israel, a religious Jew who has raised money for the settlements and supports moving the U.S. embassy from Tel Aviv to Jerusalem. Trump supported that idea during the election campaign, but it has been put on the back-burner in recent weeks.

Under Barack Obama, the White House maintained a firm anti-settlements line, calling them illegitimate and an obstacle to peace. Most of the world considers settlements illegal under international law, a position Israel rejects.

The European Union and Britain issued statements this week criticizing Netanyahu’s settlement plans, which they see as further breaking up the West Bank and undermining the possibility of a contiguous Palestinian state ever emerging.

Netanyahu, who will visit Trump in Washington on Feb. 15, may see the White House statement as doubly beneficial.

As well as not ruling out building within existing blocs, which Israel hopes to retain in any final agreement with the Palestinians, it may allow him to silence far-right voices in his own coalition calling for much greater settlement growth and annexation of parts of the West Bank.

Trump has effectively set a limit on how far-ranging settlement-building can be, so Netanyahu will be able to tell the far-right their ambitions are out of the question.

At the same time, Netanyahu may have to curtail some of the plans he himself has announced in recent days.

While most of the 6,000 settler homes he has promised are in existing blocs, many are not and may have to be scrapped if he wants to adhere to the White House line. He may also have to rethink a pledge this week to build the first new West Bank settlement since the 1990s.

(Additional reporting by Ori Lewis; Editing by Tom Heneghan and Robin Pomeroy)

Trump adopts aggressive posture toward Iran after missile launch

A file photo shows a ballistic missile launched and tested at an undisclosed location in Iran. REUTERS/Mahmood

By Steve Holland and Matt Spetalnick

WASHINGTON (Reuters) – The White House put Iran “on notice” on Wednesday for test-firing a ballistic missile and said it was reviewing how to respond, taking an aggressive posture toward Tehran that could raise tensions in the region.

While the exact implications of the U.S. threat were unclear, the new administration signaled that President Donald Trump intended to do more, possibly including imposing new sanctions, to curb what he sees as defiance of a nuclear deal negotiated in 2015 by then-President Barack Obama.

The tough talk commits the administration to back up its rhetoric with action, which could cast doubt on the future of the Iran agreement and sow further uncertainty in an already chaotic Middle East, experts said.

Trump has frequently criticized the Iran nuclear deal, calling the agreement weak and ineffective.

Officials declined to say whether the military option was on the table, although Pentagon spokesman Christopher Sherwood said: “The U.S. military has not changed its posture in response to the Iranian test missile launch” on Sunday.

A fiery statement from Trump’s national security adviser, Michael Flynn, marked some of the most aggressive rhetoric by the administration that took office on Jan. 20, making clear that Obama’s less confrontational approach toward Iran was over.

Flynn said that instead of being thankful to the United States for the nuclear deal, “Iran is now feeling emboldened.”

“As of today, we are officially putting Iran on notice,” he told reporters in his first appearance in the White House press briefing room.

He said the launch and an attack on Monday against a Saudi naval vessel by Iran-allied Houthi militants off the coast of Yemen underscored “Iran’s destabilizing behavior across the Middle East.”

Iran confirmed it had tested a new missile but said it did not breach a nuclear accord reached with world powers or a U.N. Security Council resolution that endorsed the pact.

‘HOW WOULD U.S. RESPOND?’

Analysts said Iran could interpret Flynn’s warning as bluster given that the Trump administration is still formulating a response.

“It’s a vague way of drawing a line in the sand,” said Mark Fitzpatrick, executive director of the International Institute for Strategic Studies-Americas. “Taken literally, it could mean: ‘You do this one more time and you’ll pay for it.’ But how would the U.S. respond?”

The warning could foreshadow more aggressive economic and diplomatic measures against Iran.

Three senior U.S. officials, speaking on condition of anonymity, said a range of options, including economic sanctions, was being considered and that a broad review was being conducted of the U.S. posture toward Iran.

One official said the intent of Flynn’s message was to make clear the administration would not be “shy or reticent” toward Tehran.

“We are in the process of evaluating the strategic options and the framework for how we want to approach these issues,” the official said. “We do not want to be premature or rash or take any action that would foreclose options or unnecessarily contribute to a negative response.”

“Our sincere hope is that the Iranians will heed this notice today and will change their behavior,” he said.

Iran has test-fired several ballistic missiles since the nuclear deal in 2015, but the latest test was the first since Trump became president.

RISK OF MISCALCULATION

The issue came to the forefront on the same day that the U.S. Senate confirmed former Exxon Mobil Corp Chief Executive Rex Tillerson as secretary of state.

Trump told Tillerson at his swearing-in ceremony that “although you inherit enormous challenges in the Middle East and around the world, I believe we can achieve peace and security in these very, very troubled times.”

Simon Henderson, a Gulf expert at the Washington Institute for Near East Policy, said there was a danger of a miscalculation by Washington or Tehran.

“The question now is will the Iranian logic be: ‘My goodness, this guy is serious, we’d better behave ourselves?’” he said. “Or do they say: ‘Why don’t we tweak him a bit more to see what he really means, maybe test him.’”

The administration’s tough statement came midway through a three-day exercise by 18 U.S., French, British and Australian warships and an undisclosed number of aircraft close to Iranian waters in the Gulf, according to a statement by U.S. Central Command.

Trump is due to hold talks with Israeli Prime Minister Benjamin Netanyahu, a strident critic of the Iran nuclear deal, at the White House on February 15.

The U.S. president and Saudi Arabia’s ruler, King Salman, spoke by phone on Sunday and were described by the White House as agreeing on the importance of enforcing the deal and “addressing Iran’s destabilizing regional activities.”

Sunni Muslim-dominated Saudi Arabia, home to Mecca and other Islamic holy sites, and Shi’ite Muslim-majority Iran are regional rivals.

(Additional reporting by Jonathan S. Landay, Roberta Rampton, Idrees Ali, Yeganeh Torbati, Lesley Wroughton, Yara Bayoumy and Arshad Mohammed; Editing by Jonathan Oatis and Peter Cooney)

Israel’s Netanyahu says he will push Trump on Iran sanctions

Israel Prime Minister Benjamin Netanyahu

JERUSALEM (Reuters) – Israeli Prime Minister Benjamin Netanyahu said on Monday he planned to push U.S. President Donald Trump to renew sanctions against Iran during a visit to Washington next month, complaining that Iran had once more tested a ballistic missile.

Netanyahu has been harshly critical of the deal that six world powers including the United States under president Barack Obama struck with Iran to curb its nuclear program in return for an end to multilateral sanctions. Iran is Israel’s avowed enemy and Israel argues that the agreement fails to prevent Iranian weapons posing a threat to its very existence.

During the U.S. election campaign, Trump called the pact a “disaster” and “the worst deal ever negotiated”, though he has also said it would be hard to overturn an agreement enshrined in a U.N. resolution.

In a statement on his personal Twitter account, around the same time the White House announced his Feb. 15 visit, Netanyahu said: “Iran again launched a ballistic missile. This is a flagrant violation of a Security Council Resolution.”

A U.S. official said on Monday that Iran had test-fired a medium-range ballistic missile on Sunday, which exploded after 630 miles.

“In my upcoming meeting with President Trump I intend to bring up the renewal of sanctions against Iran,” Netanyahu said. “Iran’s aggression cannot be left without a response.”

The Obama administration said Iran’s ballistic missile tests had not violated the nuclear agreement, but Trump has said he will stop Tehran’s missile program.

Under the U.N. resolution approving the nuclear deal, Iran is “called upon” to refrain from work on ballistic missiles designed to deliver nuclear weapons for up to eight years.

Critics of the deal have said the language is ambiguous and does not make compliance obligatory, while Tehran says the missiles it has tested are not specifically designed to carry nuclear warheads.

This month, Iranian lawmakers approved plans to increase military spending, including expanding the long-range missile program.

(Reporting by Ari Rabinovitch; Editing by Kevin Liffey)

Netanyahu backs U.S. embassy move to Jerusalem though signals no urgency

giant banner congratulating Donald Trump in Jerusalem, Israel

By Jeffrey Heller

JERUSALEM (Reuters) – Prime Minister Benjamin Netanyahu voiced support on Sunday for moving the U.S. Embassy to Jerusalem but mentioned no time frame, after a Republican activist accused Israel of pressing the Trump administration to delay the pledged step.

In an interview with Israel’s Haaretz newspaper, Marc Zell, head of the Republicans Overseas Israel branch, said new U.S. President Donald Trump was “proceeding cautiously because of concerns raised by Israeli officials”.

Trump’s team spoke often during the presidential campaign about shifting the embassy from Tel Aviv to Jerusalem, Israel’s self-proclaimed capital and a holy city at the heart of the Israeli-Palestinian conflict.

But a week ago, Trump’s press secretary, Sean Spicer, lowered expectations of an imminent announcement about an embassy move that would anger the Arab world and possibly touch off violence. [ID:nL5N1FD5Y9]

Palestinian officials said the embassy’s relocation would kill off any prospects for peace. The Palestinians want East Jerusalem – which Israel captured in a 1967 war and annexed in a move not recognized internationally – for the capital of a state they seek in the occupied West Bank and the Gaza Strip.

Israeli officials said last Sunday the embassy issue was barely discussed in a 30-minute telephone call between Trump and Netanyahu, who are to meet in Washington early next month.

Netanyahu addressed the matter in general terms in public remarks to his cabinet on Sunday that were described by Israeli media as a response to Zell’s accusation of foot-dragging.

“I want to take the opportunity to make it unequivocally clear that our position has always been, and remains so now and at all times, that the U.S. embassy should be here, in Jerusalem,” Netanyahu said, without directly mentioning Zell.

Currently, no country has its embassy in Jerusalem, the Israeli foreign ministry said. Costa Rica and El Salvador did until a few years ago, but they are now in Tel Aviv.

“Jerusalem is Israel’s capital and it is right and proper that all of the foreign embassies, and not only the American embassy, move here. I believe that in time, most of them will indeed come to Jerusalem,” Netanyahu told the cabinet.

The international community says Jerusalem’s final status should be determined via direct negotiations between Israel and the Palestinians – talks that collapsed in 2014.

Israeli officials have said they do not want a U.S. embassy move rushed and political commentators have noted that its relocation would damage the stronger relations Israel has been quietly building with the Sunni Muslim world.

(Editing by Mark Heinrich)

Israeli parliament to vote on bill legalizing settlement outposts

Jewish settlers preparing for eviction

By Jeffrey Heller

JERUSALEM (Reuters) – Israel’s parliament is widely expected to vote into law on Monday a bill retroactively legalizing about 4,000 settler homes built on privately-owned Palestinian land, a measure the attorney-general has said is unconstitutional.

Passage of the legislation, backed by the right-wing government and condemned by Palestinians as a blow to statehood hopes, may be largely symbolic, however, as it goes against Israeli Supreme Court rulings on property rights. Critics and some legal experts say it will not survive judicial challenges.

Prime Minister Benjamin Netanyahu had privately opposed the bill, which won preliminary parliamentary approval in November amid international denunciations and speculation in Israel it would subsequently die a quiet death in committee.

But the far-right Jewish Home party, a member of the governing coalition looking to draw voters from the traditional base of Netanyahu’s Likud, pressed to revive the legislation.

With Netanyahu under criminal investigation over allegations of abuse of office, and Likud slipping in polls, the right-wing leader risked alienating supporters and ceding ground to Jewish Home if he opposed the move. He has denied any wrongdoing.

While the measure seems certain to stoke further international condemnation of Israeli settlement policies – the Obama White House described the first vote two months ago as “troubling” – Netanyahu could get a more muted response from Republican President Donald Trump.

An Israeli announcement last week of plans for 2,500 more settlement homes in the West Bank caused no discernable waves with the new U.S. administration, whose spokesman responded to by describing Israel as a “huge ally”.

The government sought parliamentary approval of the bill despite Attorney-General Avichai Mandelblit’s description of it as unconstitutional and in breach of international law since it allows the expropriation of private land in territory Israel seized in the 1967 Middle East war.

The homes covered by the legislation are in outposts built deep in the West Bank without Israeli government approval.

The new law would allow settlers to hold on to land if, as stated by the bill, they “innocently” took it – ostensibly without knowing the tracts were owned by Palestinians – or if homes were built there at the state’s instruction. Palestinian owners would receive financial compensation from Israel.

Supporters say it will enable thousands of settlers to live without fear their homes could be demolished at the order of courts responding to petitions by Palestinians or Israeli anti-settlement organizations. Palestinians see it as a land grab.

Most countries view all Israeli settlement in occupied territory as illegal. Israel disputes this.

(Editing by Jeffrey Heller and Andrew Heavens)

Police question Netanyahu for third time in criminal case

Benjamin Netanyahu

By Maayan Lubell

(Reuters) – Israeli police questioned Prime Minister Benjamin Netanyahu on Friday for the third time this month as part of a criminal investigation into abuse of office, Israeli media reported.

A police source confirmed the questioning took place but would not provide further details. A Reuters cameraman at Netanyahu’s official residence, where the questioning took place, said investigators were on the scene for three hours.

Police confirm they are questioning Netanyahu as a suspect in two criminal cases, one involving gifts given to him and his family by businessmen and the other related to conversations he held with an Israeli publisher. He has denied wrongdoing.

If charges are brought, political upheaval in Israel would be likely, with pressure on Netanyahu, 67, to step down after 11 years in office, spread over four terms.

The first case — referred to by police as Case 1,000 — involves Netanyahu and family members receiving gifts on a regular basis from two businessmen. Israeli media have reported that the gifts include cigars and champagne.

The second involves a deal Netanyahu allegedly discussed with the owner of one of Israel’s largest newspapers, Yedioth Ahronoth, for better coverage in return for curbs on competition from a free paper owned by U.S. casino mogul Sheldon Adelson.

Adelson is a supporter of the prime minister and his newspaper is staunchly pro-Netanyahu.

Israel Radio said Friday’s questioning mainly focused on the second case.

Addressing parliament on Wednesday, Netanyahu said there was nothing wrong with receiving gifts from close friends and that it was common for politicians to hold conversations with newspaper publishers. He accused opponents of trying to overthrow him.

“The goal is to pressure the attorney-general to press charges at any cost. There is no limit to the hounding, the persecution, the lies,” Netanyahu said.

In a research note published this week, Moody’s rating agency said the investigations into Netanyahu “are sufficiently serious that they could end his tenure as prime minister”.

“Should Netanyahu be forced to resign, it is likely that new elections would need to be held, since there is no clear successor in his Likud party.”

Under Israeli law, the prime minister is not obliged to resign even after he is charged, but he could be pressured into stepping down. Opponents are calling for him to do so.

Netanyahu is not the first Israeli leader to have faced criminal investigation: former prime minister Ehud Olmert was convicted of breach of trust and bribery in 2014 and Ariel Sharon was questioned while in office over allegations of bribery and campaign financing illegalities.

Israel Radio and Channel Ten television reported this week that police were investigating two more cases involving Netanyahu. Police did not confirm or deny the reports.

(Editing by Luke Baker and Dominic Evans)

Israel lifts restrictions on building more homes in East Jerusalem

Israeli settlements being built

By Ori Lewis

JERUSALEM (Reuters) – Israeli Prime Minister Benjamin Netanyahu has told senior ministers he is lifting restrictions on settlement building in East Jerusalem, a statement said on Sunday, immediately after the city’s municipal government approved permits for the building of hundreds of new homes in the area.

“There is no longer a need to coordinate construction in the Jewish neighborhoods in East Jerusalem. We can build where we want and as much as we want,” the statement quoted Netanyahu as saying, adding that he also intended to allow the start of building in the West Bank.

“My vision is to enact sovereignty over all the settlements,” the statement also said, pointing to Netanyahu’s apparent bid to win greater support from settlers and appeal to a right-wing coalition partner.

Netanyahu told the ministers of the move at a meeting where they also decided unanimously to postpone discussing a bill proposing the Israeli annexation of the West Bank settlement of Maale Adumim, home to 40,000 Israelis near Jerusalem.

A brief statement issued after the discussion by the ministerial forum known as the Security Cabinet, said work on the bill would be delayed until after Netanyahu meets the new U.S. President, Donald Trump.

Netanyahu held his first phone conversation with the president on Sunday, saying afterwards that the conversation had been “very warm” and that he had been invited to a meeting with Trump in Washington in February.

“Many matters face us. The Israeli-Palestinian issue, the situation in Syria, the Iranian threat,” Netanyahu said in remarks broadcast at the start of his weekly cabinet meeting.

Meanwhile the housing projects approved by the Jerusalem municipality on Sunday are on land that the Palestinians seek as part of a future state and had been taken off the agenda in December at Netanyahu’s request to avoid further censure from Trump’s predecessor Barack Obama.

However, Israel’s right wing believes that Trump’s attitude towards settlements built in the West Bank and East Jerusalem — areas Israel captured in the 1967 war — will be far more supportive than that of Obama.

Jerusalem’s City Hall approved the building permits for more than 560 units in the urban settlements of Pisgat Zeev, Ramat Shlomo and Ramot, areas annexed to Jerusalem in a move not recognized internationally.

Jerusalem Mayor Nir Barkat said in a statement that the eight years of the Obama administration had been “difficult with pressure … to freeze construction” but that Israel was now entering a new era.

The Palestinians denounced the move. “We strongly condemn the Israeli decision to approve the construction,” Nabil Abu Rdainah, spokesman for Palestinian President Mahmoud Abbas, told Reuters.

In its final weeks, the Obama administration angered the Israeli government by withholding a traditional U.S. veto of an anti-settlement resolution at the United Nations Security Council, enabling the measure to pass.

Trump’s nominee to be U.S. ambassador to the United Nations, Nikki Haley, echoed his condemnation of the world body over its treatment of Israel at her Senate confirmation hearing last week.

Before taking over as president, Trump also pledged to move the U.S. embassy from Tel Aviv to Jerusalem and has nominated as new U.S. ambassador to Israel, David Friedman, who is seen as a supporter of settlements.

Israel views all Jerusalem as its capital, but most of the world considers its final status a matter for peace negotiations. The Palestinians have said that an embassy move would kill any prospect for peace. Negotiations broke down in 2014.

Commentators in Israel have said it is too early to tell what Trump’s policy on these matters will actually be although the White House said on Sunday it was in the early stages of talks to fulfill Trump’s pledge.

“We are at the very beginning stages of even discussing this subject,” White House Press Secretary Sean Spicer said in a statement.

Most countries consider settlement activity illegal and an obstacle to peace. Israel disagrees, citing a biblical, historical and political connection to the land — which the Palestinians also claim — as well as security interests.

(Additional Reporting by Ali Sawafta in Ramallah; Editing by David Goodman, Greg Mahlich)

Trump invites Netanyahu to Washington for visit: White House

US Embassy in Tel Aviv

By Ayesha Rascoe and Matt Spetalnick

WASHINGTON (Reuters) – President Donald Trump invited Israeli Prime Minister Benjamin Netanyahu to visit Washington in early February during a phone call in which they discussed the importance of strengthening the U.S.-Israeli relationship, the White House said on Sunday.

In his first call with Netanyahu since taking office on Friday, Trump stressed his “unprecedented commitment to Israel’s security.”

“The president and the prime minister agreed to continue to closely consult on a range of regional issues, including addressing the threats posed by Iran,” the White House said in a statement.

Trump also said peace between Israel and the Palestinians could only be negotiated between the two parties, but that the United States would work with Israel to achieve that goal.

Relations between Israel and the Obama administration ended on a contentious note, when the United States declined to veto a U.N. Security Council resolution calling for a halt to Israeli settlement-building.

The readout from the White House did not include any mention of moving the U.S. embassy in Israel to Jerusalem from Tel Aviv, an action that would likely spark anger in the Arab world.

Earlier on Sunday, the White House said it was only in the early stages of talks to fulfill Trump’s campaign pledge to relocate the embassy.

“We are at the very beginning stages of even discussing this subject,” White House spokesman Sean Spicer said in a statement. Aides said no announcement of an embassy move was imminent.

Washington’s embassy is in Tel Aviv, as are most foreign diplomatic posts. Israel calls Jerusalem its eternal capital, but Palestinians also lay claim to the city as part of an eventual Palestinian state. Both sides cite biblical, historical and political claims.

Any decision to break with the status quo is likely to prompt protests from U.S. allies in the Middle East such as Saudi Arabia, Jordan and Egypt. Washington relies on those countries for help in fighting the Islamic State militant group, which the new U.S. president has said is a priority.

The U.S. Congress passed a law in 1995 describing Jerusalem as the capital of Israel and saying it should not be divided, but successive Republican and Democratic presidents have used their foreign policy powers to maintain the embassy in Tel Aviv and to back negotiations between Israel and the Palestinians on the status of Jerusalem.

In early December, then-President Barack Obama renewed the presidential waiver on an embassy move until the beginning of June. It is unclear whether Trump would be able to legally override it and go ahead with relocation of the embassy.

U.S. diplomats say that, despite the U.S. legislation, Washington’s foreign policy is in practice broadly aligned with that of the United Nations and other major powers, which do not view Jerusalem as Israel’s capital and do not recognize Israel’s annexation of Arab East Jerusalem after its capture in the 1967 Middle East war.

Israel approved building permits on Sunday for hundreds of homes in three East Jerusalem settlements in expectation that Trump will row back on the previous administration’s criticism of such projects.

(Reporting by Ayesha Rascoe, Warren Strobel and Matt Spetalnick; Editing by Howard Goller and Paul Simao)

Obama says Israeli settlements making two-state solution impossible

Palestinian laborers working at construction site on Israeli settlement

JERUSALEM (Reuters) – U.S. President Barack Obama, in an interview aired on Israeli television on Tuesday, said Prime Minister Benjamin Netanyahu policy backing settlements in occupied territory is making a future Palestinian state impossible.

“Bibi says that he believes in the two-state solution and yet his actions consistently have shown that if he is getting pressured to approve more settlements he will do so regardless of what he says about the importance of the two-state solution,” Obama said, referring to Netanyahu by his nickname.

Some 570,000 Israelis now live in the Israeli-occupied West Bank and in East Jerusalem, together home to more than 2.6 million Palestinians. Israel captured the West Bank and East Jerusalem in the 1967 Middle East war. It later annexed East Jerusalem in a move not recognized internationally.

Obama, who leaves office on Jan. 20, said that in the past few years both he and U.S. Secretary of State John Kerry had “countless times” personally appealed to Netanyahu to stop settlement activity, but that those pleas were ignored.

“Increasingly what you are seeing is that the facts on the ground are making it almost impossible, at least very difficult, and if this trendline continues – impossible, to create a contiguous, functioning Palestinian state,” Obama told Channel Two’s Uvda program.

Israel expects to receive more favorable treatment from Obama’s successor, President-elect Donald Trump.

Trump has denounced the Obama administration’s Israel policy and has vowed to move the U.S. Embassy from Tel Aviv to Jerusalem, riling the Palestinians. He has also named as U.S. ambassador to Israel a lawyer who raised money for a major Jewish settlement.

Relations between Netanyahu and Obama have been strained for years over their differences regarding settlement-building and Iran nuclear deal’s with world powers signed in 2015.

Ties deteriorated to a low point in December when Washington did not exercise its veto to stop a U.N. Security Council resolution that demands an end to Israeli settlement building, prompting harsh criticism from Netanyahu of Obama and Kerry.

The right-wing Netanyahu has accused the Obama administration of being obsessed with settlements and not recognizing what he called “the root of the conflict – Palestinian opposition to a Jewish state in any boundaries.”

Netanyahu, for whom settlers are a key constituency, has said his government has been their greatest ally. The Palestinians want the West Bank and East Jerusalem, along with the Gaza Strip – which Israel also captured in 1967 but withdrew from in 2005 – for an independent state.

The last U.S.-brokered peace talks broke down in 2014.

Washington deems settlement activity illegitimate and most countries view it as an obstacle to peace. Israel cites a biblical, historical and political connection to the land – which the Palestinians also claim – as well as security interests.

(Reporting by Maayan Lubell; editing by Mark Heinrich)