The American Secretary of State Hillary Clinton has told Israel that it faces tough choices if it's to achieve peace with the Palestinians. Speaking after a public row with Israel over planned Jewish settlements on occupied Palestinian territory, Mrs Clinton said the status quo was unsustainable, and negotiations on a two-state solution were the only way forward.

"It will take direct negotiations between the parties to work through all the issues and end the conflict. United States stands ready to play an active and sustained role in these talks and to support the parties as they work to resolve permanent status issues including security, borders, refugees and Jerusalem."