Sparky says "let's camp the BBC!" because we can't leave the Guru uninformed ...

Israel's

Netanyahu

downplays

tensions

with US

Israel denies that the new homes are being built illegally Israel's PM Benjamin Netanyahu has moved to ease tensions with the US, describing the two countries' relations as those of "allies and friends". Mr Netanyahu also dismissed reports one of his confidants called US President Barack Obama a "disaster" for Israel. The US has criticised the building of Jewish homes in East Jerusalem, which prompted the Palestinians to pull out of US-brokered indirect peace talks. The row has caused one of the worst crises in US-Israeli ties for decades. It has also led to increased tensions between Israel and the Palestinians, with Palestinian Authority President Mahmoud Abbas ruling out talks with Israel unless it halts the construction of settlements in occupied territory. Some leaders at an Arab League summit in Libya echoed Mr Abbas's position in a statement on Sunday, saying negotiations could not resume unless Israel stopped all settlement building. Mr Abbas says talks cannot take place if Israel continues settlement building Meanwhile, the US is considering abstaining from a possible UN Security Council resolution against Israeli settlement expansion in East Jerusalem, the BBC has learned. The US usually blocks Security Council resolutions criticising Israel. In the wake of a controversial visit to the US, Mr Netanyahu said on Friday that his policy on East Jerusalem would not change, despite US pressure on Israel to announce a freeze on building Jewish homes there. A best-selling Israeli newspaper then quoted an unidentified aide as saying: "You could say that Obama is the greatest disaster for Israel - a strategic disaster." But the prime minister, speaking before he briefed the cabinet on his US trip, condemned these comments as "unacceptable". "They do not come from anyone representing me. The relations between Israel and the United States are those of allies and friends, and are based on tradition spanning many years." Re-occupy Gaza? Tension has also been mounting in Gaza in recent days, with two Israeli soldiers and two Palestinian militants reportedly killed in the worst clashes for more than a year. At the cabinet meeting, Mr Netanyahu stressed that Israel would provide a "firm and decisive" response to any attack from the Palestinian militant group Hamas. Israel pulled out in 2009 after an offensive which left hundreds of people dead. Israel insists that Jerusalem will remain its undivided capital. Nearly half a million Jews live in more than 100 settlements built since Israel's 1967 occupation of the West Bank and East Jerusalem. They are considered illegal under international law, although Israel disputes this. The Middle East quartet - the US, EU, UN and Russia - has called for final status negotiations to reach a comprehensive peace deal within two years. POINTS OF TENSION IN JERUSALEM 1 Gilo: 850 homes approved for publication and planning objections in Nov 2009 2 Pisgat Zeev: 600 homes approved for publication and planning objections in Jan 2010 3 Sheikh Jarrah: Municipality approves the building of 20 new apartments on the site of an old hotel 4 Ramat Shlomo: 1,600 homes approved for publication and planning objections in Mar 2010 5 Silwan: Demolition orders on 88 Palestinian homes built without difficult-to-get permits - Israel planning controversial renewal project 6. West Bank barrier: Making Palestinian movement between West Bank and Jerusalem harder - Israel says it is for security ISRAEL AND THE PALESTINIANS KEY STORIES Israeli tanks 'advance into Gaza' No change on Jerusalem, says PM Israeli PM hopeful on peace talks Israel 'will build in Jerusalem' Clinton warns Israel of choices FEATURES AND ANALYSIS Deep foreboding The US wants peace but just avoiding war will be hard, says Jeremy Bowen Jerusalem's tinderbox History lessons for US policy? Israel and the US: A bruised friendship Jerusalem Diary: Image of Israel Gaza's male hairdressers under pressure Fighting 'racist' Israeli citizenship law Archaeology and Jerusalem struggle VIDEO AND AUDIO Blair: 'Confidence' needed in Middle East Tension rises in West Bank Baroness Ashton on Quartet talks Ban Ki-moon on settlements freeze