Palestinians reject Israel’s settlement terms

Peace talks are in limbo as the Palestinian Authority has refused to recognize Israel as a Jewish state.

Israeli Prime Minister Benjamin Netanyahu said that he will extend a freeze on settlement construction in the West Bank, but only on the condition that Palestine recognizes the essentially Jewish nature of Israel. Palestinian leaders have long refused any such recognition on the grounds that it could prohibit the return of Arab refugees to Israeli territory if a peace settlement is eventually reached. A ten-month freeze of the construction of Jewish settlements on disputed land expired last month, jeopardizing the first direct peace talks between the two sides in nearly two years. Barack Obama has said he believes a final deal is possible within one year, but that prospect appears increasingly unlikely.