Ambassador Michael Oren reportedly made the remark to Israeli diplomats Israel's ambassador to the US has said that relations between the two countries are at their lowest point for 35 years, Israeli media have reported.Last week Israeli officials announced the building of 1,600 new homes in occupied East Jerusalem while US Vice-President Joe Biden was visiting. The move was seen as an insult to the US. Palestinian leaders say indirect talks with Israel are now "doubtful". But Israel's PM said Jewish settlements did "not hurt" Arabs in East Jerusalem. Addressing Israel's parliament, the Knesset, Benjamin Netanyahu said he wanted peace negotiations, and hoped the Palestinians would not present "new preconditions" for talks. It is widely seen as a political impossibility for any Israeli prime minister publicly to announce a suspension of building in East Jerusalem BBC's Heather Sharp in Jerusalem Israel and US: A bruised friendship "No government in the past 40 years has limited construction in neighbourhoods of Jerusalem," he said.[Read more...]