US mulls presenting own Mideast plan: report

In the face of a diplomatic spat with Israel, the White House is weighing proposing a U.S. plan to form the basis of Israeli-Palestinian negotiations, U.S. media reported on Thursday.

U.S. officials are questioning the commitment of hawkish Israeli Prime Minister Benjamin Netanyahu's government to peace talks after it announced plans to build 1,600 new settler homes in disputed east Jerusalem during U.S. Vice President Joe Biden's visit to the Jewish state, the New York Times reported.

The row between the two allies that began more than a week ago also led U.S. officials to urge for a change in the American approach to the seminal conflict, according to the report.

"The current status quo won't work, and won't get us anywhere," an administration official concluded.

Should President Barack Obama present his own proposal, complete with territorial maps, it would likely not take place until his special envoy to the Middle East, George Mitchell, had engaged in several months of U.S.-brokered indirect "proximity" talks between the two sides, the Times said.

The United States was "still awaiting an Israeli response to our request that they take steps to build confidence for the proximity talks," a senior administration official told the newspaper, in a reference to demands by Secretary of State Hillary Clinton.

President Obama said on Wednesday Israeli plans to build more homes near East Jerusalem were not helpful for the Middle East peace process, but he said the issue had not led to a crisis with one of the United States' closest allies.

"Israel's one of our closest allies, and we and the Israeli people have a special bond that's not going to go away," Obama said in an interview on Fox News Channel's Special Report with Bret Baier.

"But friends are going to disagree sometimes," Obama said.

Israel regards all of Jerusalem, including the eastern sector captured 43 years ago, as its capital. Palestinians want East Jerusalem to be the capital of the state they hope to establish in the West Bank and Gaza Strip.

Obama said in the interview that he had sent Biden to the region at a moment when the United States was trying to restart talks between Israelis and the Palestinians.

"I specifically sent Vice President Biden to Israel to send a message of support and reassurance about my belief that Israel's security is sacrosanct and that we have a host of shared interests," Obama said.

"There is a disagreement in terms of how we can move this peace process forward," he added.

"The actions that were taken by the interior minister in Israel weren't helpful to that process. Prime Minister Netanyahu acknowledged as much and apologized for it," Obama said.

"What we need right now is both sides to recognize that it is in their interests to move this peace process forward," Obama said

Israel's one of our closest allies, and we and the Israeli people have a special bond that's not going to go away.But friends are going to disagree sometimes

President Barack Obama