Israel makes settlement U-turn in face of Iran deal

Prime Minister Benjamin Netanyahu's decision to scrap plans for a "record" 20,000 West Bank settler homes was driven by Israel's bid to scupper an Iranian nuclear deal, observers said today.
Netanyahu publicly forced Housing Minister Uri Ariel, who had approved the plans, to back down after drawing US condemnation for a settlement project the Palestinians warned would end a fragile peace process.
Intelligence Minister Yuval Steinitz said today that all settlement plans should be "coordinated" with the premier, in cautionary remarks directed at Ariel, who himself lives in a settlement and is a member of Jewish Home, the far-right religious party in the ruling coalition.

Netanyahu had told Ariel the plan "creates an unnecessary confrontation with the international community at a time when we are making an effort to persuade elements in the international community to reach a better deal with Iran," his office quoted him as saying.
His dramatic intervention to halt the plan to build what experts said would be the biggest ever batch of settler homes on occupied Palestinian territory came after fierce criticism from the US, which has been pushing for a peace agreement between Israel and the Palestinians.
State Department spokeswoman Jennifer Psaki said Washington was not only concerned by the initial announcement of the 20,000 settler homes, but also "surprised," and sought an explanation from Israel.

She repeated the longstanding US position on settlements -- reaffirmed by US Secretary of State John Kerry during a visit to the Middle East last week -- that "we do not accept the legitimacy of continued settlement activity."
And Netanyahu directly linked his reprimand of Ariel to Israel's plans to scupper a possible international deal with Israel's arch-foe Iran over its disputed nuclear programme.
"At this time, the attention of the international community must not be diverted from the main effort -- preventing Iran from receiving an agreement that will allow it to continue its military nuclear program," Netanyahu said.