"Insulted" By Israel, U.S. Scrambles to Save Talks -- New York Times/Reuters
JERUSALEM (Reuters) - Israel's relationship with the United States, a defining feature of the troubled Middle East, was under severe strain as diplomats scrambled on Saturday to save newborn U.S.-brokered peace talks with the Palestinians.
A senior U.S. official predicted "a dicey period here in the next couple days to a couple of weeks" as Palestinians demanded the reversal of a new Israeli settlement plan and Prime Minister Benjamin Netanyahu's coalition, which includes pro-settler parties, reacts to unusually blunt criticism from Washington.
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