US urges Israel to be 'cautious' over construction

The United States said on Monday that Israel's approval of building 112 new Jewish homes in the occupied West Bank did not violate a limited Israeli settlement freeze but was the kind of act both sides should be cautious about as they embark on indirect peace talks.

"Both sides should be cautious about actions that might be either misperceived within the region or that might be exploited by those who want to create obstacles to further progress," US State Department spokesman P.J. Crowley told reporters. (Reuters)