US Secretary of State Hillary Clinton will talk soon with Israel's Prime Minister Benjamin Netanyahu in an effort to ease a bitter diplomatic feud with the staunch US ally, officials said.

Officials said the call could come as early as Wednesday, as the Obama administration awaits Netanyahu's response to its complaints over Israeli settlement policy, which has provoked the sharpest US-Israel row in years.
 

But in a possible sign it wants to stop the row widening, the administration also termed the dispute a disagreement between friends that would not shatter their "unbreakable bond".

Uncertainty over relations unfolded amid rising tensions, as hundreds of Palestinians clashed with Israeli security forces in east Jerusalem.
 

The row erupted when Washington, frustrated at a lack of success for its peace brokering, reacted angrily last week to an Israeli announcement that 1,600 new homes for Jewish settlers would be built in east Jerusalem, the mainly Arab half of the Holy City which was annexed after a war in 1967.
 

The move came at the moment the United States had convinced the Palestinians to take part in indirect "proximity" talks with the Israelis, and during a visit to Jerusalem by Vice President Joe Biden.
 

State Department spokesman Philip Crowley told reporters he expected a conversation "very soon" between Clinton and Netanyahu.
 

A US official later said on the condition of anonymity the telephone call could happen Wednesday.

Earlier, Clinton said Washington was engaged in "very active consultation” with the Israelis over steps that would demonstrate the requisite commitment to reviving peace talks.

Asked whether ties had plunged to a 35 year low, she answered, "I don't buy that."

Commitment to Israel
"We have an absolute commitment to Israel's security. We have a close, unshakable bond between the United States and Israel and between the American and Israeli people."
 

Her remarks where echoed at the White House, where spokesman Robert Gibbs said some disagreements were normal between partners.

The Israelis appeared keen to portray Washington's tone at least as a temporary suspension of hostilities.
 

"The State of Israel appreciates and cherishes the warm words from Secretary of State Clinton on the deep ties between the US and Israel and the US commitment to Israel's security," Netanyahu's office said.
 

Israel's ambassador to the United States Michael Oren meanwhile denied he had told a newspaper the allies had hit their worst crisis in 35 years, claiming he was "flagrantly misquoted".
 

On Friday, Clinton told Netanyahu by telephone that the Israeli announcement on the homes last week was a "deeply negative signal."
 

The State Department announced that US envoy George Mitchell, who had been due to visit Israel, would not do so before a meeting of the Middle East diplomatic Quartet in Moscow on Thursday.
 

Crowley insisted the move was a mere logistical issue rather than a swipe at Netanyahu, who has apologized for the timing of the settler announcement but has not agreed to halt the construction.

Lockdown lifted
Israel meanwhile Wednesday lifted its lockdown on the occupied West Bank and reopened the flashpoint Al-Aqsa mosque compound, a day after Jerusalem saw the heaviest Palestinian rioting in years.
 

US General David Petraeus has also provoked debate on the Middle East crisis, telling a congressional committee Tuesday that Israeli-Palestinian tensions challenged efforts to advance US interests in the region.
 

"The conflict foments anti-American sentiment, due to a perception of US favouritism for Israel," Petraeus said in written testimony to the Senate Armed Services Committee.
 

Eric Cantor, the number two Republican in the House of Representatives, also said US security was being threatened - but argued the cause was "playing such hardball" with a traditional ally.
 

Source: AFP