US, Israel still at odds on settlements

US Secretary of State John Kerry on Wednesday said Israel's building of settlements on occupied land was jeopardizing Middle East peace.

In a swiftly issued statement, Israeli Prime Minister Benjamin Netanyahu accused Kerry of bias. He said Israel did not need to be lectured to by foreign leaders and looked forward to working with President-elect Donald Trump, who has vowed to pursue more pro-Israeli policies.

In a 70-minute speech, Kerry said Israel "will never have true peace" with the Arab world if it does not reach an accord based on Israelis and Palestinians living in their own states.

Ties reached a low point Friday when Washington cleared the way for a UN resolution that demanded an end to Israeli settlement-building, prompting Israeli officials to direct attacks against Obama and Kerry.

"Despite our best efforts over the years, the two-state solution is now in serious jeopardy," Kerry said at the State Department. "We cannot, in good conscience, do nothing, and say nothing, when we see the hope of peace slipping away."

The United States had appealed to Israel in public and private to stop the march of settlements countless times, Kerry said.

Netanyahu said Kerry "obsessively dealt with settlements" and barely touched on "the root of the conflict - Palestinian opposition to a Jewish state in any boundaries".

In a statement, Palestinian President Mahmoud Abbas said he was convinced peace with Israel was achievable.

Netanyahu, for whom settlers are a key constituency, has said his government has been their greatest ally since Israel captured the West Bank and East Jerusalem in a 1967 war. Some 570,000 Israelis now live in the West Bank and East Jerusalem, together home to more than 2.6 million Palestinians.

Israel expects to receive more favorable treatment from Trump, who takes office on Jan 20. But Israelis fear Kerry's remarks will put them on the defensive, prompting other countries to apply pressure, including by adding fuel to the boycott, divestiture and sanctions movement against Israel, especially in Europe.

"We cannot continue to let Israel be treated with such total disdain and disrespect. They used to have a great friend in the US, but not anymore," Trump said in a series of tweets. "Stay strong Israel, January 20th is fast approaching!"