US outraged at Israeli settlement

Israel's relationship with the US has hit a new low, after an announcement of a new plan for a Jewish settlement was made during a visit by Vice President, Joe Biden.

US Secretary of State, Hillary Clinton, has called the announcement an "insult".

Israel plans to build 1,600 new apartments in east Jerusalem, which is home to Jewish and Muslim holy sites. The Palestinians see East Jerusalem as their capital.

The timing of Israel's disclosure came during Vice President Biden's visit to the country, and after Palestinians had agreed to resume indirect peace talks.

U.S. Secretary of State Hillary Rodham Clinton speaks on the release of the State Department's 2009 Country Reports on Human Rights Practices, Thursday, March 11, 2010, at the State Department in Washington. (AP Photo/Haraz N. Ghanbari)