Israel Analysis: A 90-Day Agreement on Settlements with the US?

On Wednesday, as the highest-level Israeli official at the Hiroshima memorial, Deputy Foreign Minister Danny Ayalon said, "Never Again", and pointed at Tehran: "In order to prevent another Hiroshima, the international community must put an immediate stop to Iran’s nuclear program. The world cannot be complacent about a nuclear Iran and must do whatever is necessary to prevent it."

Back in the Middle East, it was a busy day. Palestinian chief negotiator Saeb Erekat told Army Radio that the key to peace negotiations is in Prime Minister Benjamin Netanyahu's hands: 

All Israeli claims that Palestinians are torpedoing the [new] understanding between Washington and Jerusalem are just part of the regular Israeli machinations in the blame game.

The Israelis know our position...we will negotiate beginning with borders and security...all other core issues...will be dealt with after 90 days.

I am under your [the Israeli] occupation...we want to reach a two-state solution with 1967 borders...we have recognized your existence.

Meanwhile, the feuding over the settlements issue continued. Although Israeli officials denied speculation that a disagreement over expansion in East Jerusalem had delayed the draft of the US package of incentives, it was reported that Jewish construction in that area during the 90-day "freeze" period would not spelled out --- only the West Bank would be mentioned. Prime Minister Benjamin Netanyahu's office confirmed, "Discussions with the United States over the formulation of the document of understandings does not involve Jerusalem." 

Nevertheless, Netanyahu's office stated that he was close to reaching an understanding with the US, convening his Cabinet within 24 hours to approve the deal. 

Army Radio untangled the knots: according to officials, the draft of the agreement with Washington commits Israel to halting all building in the West Bank and coordinating any plans for East Jerusalem construction with the US over the three months. This likley means that construction will continue only in the Jewish quarter of the Old City, as Israel agrees to discussing the status of borders with the Palestinians.