The crisis touched off by last week's announcement of Israel's plans to build 1,600 new homes for Jews in Arab East Jerusalem during a high-profile visit by U.S. Vice President Joseph Biden appears to be escalating rapidly. Michael Oren, Israel's ambassador to Washington and a historian who has written widely on ties between the two nations, called the growing contretemps "the worst (bilateral) crisis in 35 years." 

The Israel Defense Forces yesterday designated Bil'in and Na'alin as closed military areas every Friday until mid-August, in a bid to halt the weekly demonstrations against the separation fence in those West Bank villages.On Sunday night dozens of troops, some wearing masks, entered the villages and plastered storefronts and home windows with notices announcing the closure order signed by the GOC Central Command, Maj. Gen. Avi Mizrahi. 

The Israeli Prime Minister Benjamin Netanyahu yesterday strongly defended Jewish settlement construction in East Jerusalem in the face of US pressure and what one of his own top diplomats described as the worst crisis in relations with Washington for more than three decades. A defiant Mr Netanyahu appeared to be digging in despite clear indications that the Obama administration is now demanding the scrapping of plans for 1,600 new Jewish settlements. 

PLO executive committee member Ahmed Qureia warned Monday that if Israel continues to build Jewish neighborhood in east Jerusalem and raze Arab homes "another intifada will break out." Speaking to reporters in Abu Dis, Qureia, a former prime minister of the Palestinian Authority, said, "If matters remain at this level, regardless of whether we take the decision or not, it is coming. If Israel continues these practices, it is coming," he said. 

The response from the Israel Defense Forces spokesman came surprisingly quickly; a mere two or three hours after the query had been sent by Haaretz, the spokesman replied orally, and then in writing, that "following the reporter's question and after receiving most of the facts, the chief [military] prosecutor, Col. Jana Modzagbrishvili has instructed the military police to look into the matter." 

Israeli riot police and soldiers have, since Friday, sealed off the Al Aqsa mosque, Islam's third holiest shrine, restricting entry to women and Palestinian men over 50. Outside the walled Old City, where the Al Aqsa mosque is situated, and in several West Bank villages, clashes were reported between Palestinian protestors, their Israeli and international supporters, and the Israel Defence Forces (IDF), leaving at least 20 Palestinians wounded.  

One of President Obama's most senior aides has described Israel's sudden announcement of plans to build 1,600 homes in occupied East Jerusalem as an "affront" to the US which could undermine peace efforts in the Middle East. Yesterday, David Axelrod said the move, which overshadowed a visit to Israel by the US vice-president, Joe Biden, was "very destructive". 

Israel has extended a lockdown on the occupied West Bank and restricted access to the al-Aqsa mosque compound in Jerusalem as tensions continue over its plans to build new homes for Jewish settlers in mainly Arab east Jerusalem. The lockdown, which was due to end on Saturday night, was extended until Tuesday at midnight, because of a continued risk of attacks, an army spokesman said.