Israeli Prime Minister Benjamin Netanyahu has ordered an inquiry into why a contested settlement plan was announced during a landmark visit by US Vice President Joe Biden, a spokesman says.
The Israeli interior ministry announced during Biden's visit on Tuesday that 1600 new homes for Jewish settlers would be built in predominantly Arab east Jerusalem, triggering fury among Arab and Palestinian leaders.
The announcment, which Secretary of State Hilary Clinton branded 'insulting' to the US, led to one of the most vocal US criticisms of Israel in the Jewish state's 60 year history.
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Critics of US policy towards Israel have long said the unwillingness to criticise Israel for its actions has prolonged the ongoing Israeli-Palestinian conflict.
Investigation announced
And in moves designed to placate the Obama administration, Israel announced an investigation.
"The prime minister has decided to create a committee bringing together ministry directors to examine what happened during vice-president Biden's visit and lay down rules to ensure such incidents are not repeated in future," a government spokesman said
on Saturday.
US Secretary of State Hillary Clinton earlier issued the unusually stern rebuke to Netanyahu over the announcement, saying it sent a "deeply negative signal" about Israel's ties to its top ally.
Clinton's criticism was backed by the Middle East Quartet, made up of the European Union, the United States, Russia and the United
Nations.
Netanyahu has apologised for the timing of the settlement announcement.
The Palestinians see east Jerusalem as the capital of their promised state.
Israel, which seized the sector in the 1967 Middle East war and annexed it in a move not recognised by the international community,
considers the Holy City its eternal and indivisible capital.
