Israel approves new settlements in East Jerusalem

Mideast peace talks grind to a halt as the Israeli prime minister has given the green light to new construction in disputed territory.

Israeli Prime Minister Benjamin Netanyahu has approved the construction of 238 housing units in East Jerusalem, the city Palestinians claim as the site of their future national capital. The construction is a fresh sticking point in peace talks after a freeze on Israeli construction in the West Bank was allowed to expire at the end of September. At that time Palestinian leader Mahmoud Abbas halted negotiations, saying he would give the U.S. a month to convince Israel to stop settlement-building. He stopped short of calling off talks altogether, as he had previously threatened. The first direct talks between the two sides in nearly two years now seem increasingly likely to fall apart.