Netanyahu downplays tensions with U.S.

Israel's PM Benjamin Netanyahu has moved to ease tensions with the U.S., describing the two countries' relations as those of "allies and friends". Netanyahu also dismissed reports one of his confidants called U.S. President Barack Obama a "disaster" for Israel. Netanyahu downplays tensions with U.S. The U.S. has criticized the building of Jewish homes in East Jerusalem, which prompted the Palestinians to pull out of U.S.-brokered indirect peace talks. The row has caused one of the worst crises in U.S.-Israeli ties for decades. In the wake of a controversial visit to the U.S., Netanyahu said on Friday that his policy on East Jerusalem would not change, despite U.S. pressure on Israel to announce a freeze on building Jewish homes there. A best-selling Israeli newspaper then quoted an unidentified aide as saying: "You could say that Obama is the greatest disaster for Israel - a strategic disaster." But the prime minister, speaking before he briefed the cabinet on his U.S. trip, condemned these comments as "unacceptable". "They do not come from anyone representing me. The relations between Israel and the United States are those of allies and friends, and are based on tradition spanning many years." Tension has also been mounting in Gaza in recent days, with two Israeli soldiers and two Palestinian militants reportedly killed in the worst clashes for more than a year. At the cabinet meeting, Netanyahu stressed that Israel would provide a "firm and decisive" response to any attack from the Palestinian militant group Hamas. Israel pulled out in 2009 after a which left hundreds of people dead. Israel insists that Jerusalem will remain its undivided capital. Nearly half a million Jews live in more than 100 settlements built since Israel's 1967 occupation of the West Bank and East Jerusalem. They are considered illegal under international law, although Israel disputes this. The Middle East quartet - the U.S., EU, UN and Russia - has called for final status negotiations to reach a comprehensive peace deal within two years.

Netanyahu downplays tensions with U.S.

The U.S. has criticized the building of Jewish homes in East Jerusalem, which prompted the Palestinians to pull out of U.S.-brokered indirect peace talks.

The row has caused one of the worst crises in U.S.-Israeli ties for decades.

In the wake of a controversial visit to the U.S., Netanyahu said on Friday that his policy on East Jerusalem would not change, despite U.S. pressure on Israel to announce a freeze on building Jewish homes there.

A best-selling Israeli newspaper then quoted an unidentified aide as saying: "You could say that Obama is the greatest disaster for Israel - a strategic disaster."

But the prime minister, speaking before he briefed the cabinet on his U.S. trip, condemned these comments as "unacceptable".

"They do not come from anyone representing me. The relations between Israel and the United States are those of allies and friends, and are based on tradition spanning many years."

Tension has also been mounting in Gaza in recent days, with two Israeli soldiers and two Palestinian militants reportedly killed in the worst clashes for more than a year.

At the cabinet meeting, Netanyahu stressed that Israel would provide a "firm and decisive" response to any attack from the Palestinian militant group Hamas.

Israel pulled out in 2009 after a which left hundreds of people dead.

Israel insists that Jerusalem will remain its undivided capital.

Nearly half a million Jews live in more than 100 settlements built since Israel's 1967 occupation of the West Bank and East Jerusalem.

They are considered illegal under international law, although Israel disputes this.

The Middle East quartet - the U.S., EU, UN and Russia - has called for final status negotiations to reach a comprehensive peace deal within two years.