Israel's announcement of plans to build 1,600 homes for Jews in East Jerusalem was destructive to peace efforts, a top aide to Barack Obama has said.
David Axelrod told ABC News it made more difficult a very difficult process, and that it seemed "calculated to undermine" talks between the Palestinians and the Israelis.
Israel's move overshadowed a visit to the country by US Vice-President Joe Biden.
Israel's prime minister has tried to play down the unusually bitter diplomatic row between the two allies.
Footage courtesy of ABC News/This Week
One-Minute World News 
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