Obama says Israel home plans not helpful for peace

US President Barack Obama said on Wednesday Israeli plans to build more homes near east Jerusalem were not helpful for the Middle East peace process, but he said the issue had not led to a crisis with one of the United States' closest allies.

"Israel's one of our closest allies, and we and the Israeli people have a special bond that's not going to go away," Obama said in an interview on Fox News Channel's Special Report with Bret Baier. (Reuters)