Middle East Inside Line: Washington Reverses on Settlements?; US & Ahmadinejad on Gaza

Washington Calms Down US Jewish Community, Reverses Position on Settlements?: On Friday, the top National Security Council official for the Middle East, Dan Shapiro issued a message to U.S. Jewish community leaders: Barack Obama is a friend of Israel and there is no disagreement between Israel and the US.

Shapiro called recent tension a result of "bad timing" and said that the US did not intend to insist that Israel halt settlement construction in East Jerusalem. He said that Israeli Prime Minister Benjamin Netanyahu's recent meeting with Obama in Washington was open and honest, during which they reached agreements on the building in East Jerusalem, negotiations with the Palestinian Authority, and Iran's nuclear program.

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Middle East Inside Line: Gaza Tension; Palestinian State by 2011?; Israel’s Hebron Show

Response to Gaza Tension: The US State Department released a statement Friday night that there is no “military solution” to the Israeli-Palestinian conflict. Spokesman P.J. Crowley said:

The Israelis have a right to self-defense. At the same, as we've said many times, we don't ultimately think there is a military solution to this.

Our message remains to the Israelis and Palestinians that we need to get the proximity talks going, focus on the substance, move to direct negotiations and ultimately arrive at a settlement that ends the conflict once and for all.

We are always concerned that steps taken by either side, legitimate or otherwise, can be misconstrued, can be twisted and end up causing turbulence that can be an impediment to progress.

Iran's Ahmadinejad Warns Israel: On Saturday, Iranian President Mahmoud Ahmadinejad told Israel and world leaders that attacks on Gaza would cost "too much":

One more time I warn the leaders of arrogant powers and the supporters of Zionist regime to not make a new mistake in the Middle East -- attacking Gaza will cost you too much.