The US government wants firm commitment from Israel that it takes the peace negotiations with the Palestinians seriously.

Meanwhile, US Middle East envoy George Mitchell has postponed today's planned trip to Israel.

Washington is furious about Israel's controversial new building plans in occupied East Jerusalem as they  undermine the peace process.

Israeli Prime Minister Benjamin Netanyahu announced on Monday that the plans would go ahead. Thus ignoring a US threat that Israel will damage relations with the US if it goes ahead with the construction of 1,600 homes on occupied Palestinian territory.

According to Prime Minister Netanyahu, the Israelis have always built in the area since mainly Arab East Jerusalem was annexed in 1967. He says he sees no reason to stop.

Thousands of Palestinians have taken to the streets in Gaza in protest against the plans. In East Jerusalem itself, protesters have clashed with police.