[18/March/2010]

Washington, March 18 (Saba) - US President Barack Obama has denied there is a crisis in Washington''s relations with Israel over its settlement plans, as a war of words continues after the Israeli government announced plans for 1,600 new homes in East Jerusalem, according to Qatar News Agency (QNA).

Speaking on the Fox News Channel, Obama said that the new settlement homes were "not helpful" for building a peace agreement between Israelis and Palestinians.

While he said the plan was a poor choice for Israel, he added: "Israel is one of our closest allies and we and the Israeli people have a special bond that''s not going to go away."

Israel announced the Jewish settlement expansion as US Vice-President Joe Biden arrived for a visit last week. Its approval of the new homes came after both sides agreed to hold indirect "proximity talks" to revive the peace process, stalled for more than a year.

Saba