Israel’s ambassador to the United States, Michael Oren, has reportedly said US-Israeli relations are facing their worst crisis in thirty-five years. Oren’s comments come one week after Israel announced it would build 1,600 news homes in the settlement of Ramat Shlomo. Israel made the announcement just as Vice President Joseph Biden arrived in the country for talks. On Friday, Secretary of State Hillary Clinton told Israel Prime Minister Benjamin Netanyahu the announcement harmed the “the bilateral relationship” between the two countries. In an interview on Meet the Press, Clinton described Israel’s actions as insulting.

Secretary of State Hillary Clinton: “It was not just an unfortunate incident of timing, but the substance was something that is not needed as we are attempting to move toward the resumption of negotiations… It was insulting. And it was insulting not just to the Vice President, who certainly didn’t deserve that. He was there with a very clear message of commitment to the peace process, solidarity with the Israeli people, but it was an insult to the United States.”

White House Senior Adviser David Axelrod described Israel’s actions as very destructive.

David Axelrod: “This was an affront. It was an insult. But most importantly, it undermined this very fragile effort to bring peace to that region. We just now have started proximity talks, that is, shuttle diplomacy between the Palestinians and the Israelis, and for this announcement to come at that time was very, very destructive.”

On Sunday, Israeli Prime Minister Benjamin Netanyahu voiced regret over the announcement of the Jewish settlement plan, but he did not give any sign that Israel would cancel the construction project. Meanwhile, the American Israel Public Affairs Committee has condemned the recent statements by the Obama White House.