Analysis - Under diplomatic fire, Israel faces settlement showdown


JERUSALEM (Reuters) - Israel risks sleepwalking into a crisis with its allies over relentless settlement-building in the occupied West Bank and East Jerusalem unless it realises that the international anger is genuine and adjusts its course.

The next few months may prove crucial if Israel is to avoid diplomatic disaster, with a new government forming around Prime Minister Benjamin Netanyahu and U.S. President Barack Obama set to make his first official visit to the Holy Land in the spring.

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