Israel's announcement of plans to build 1,600 settler homes in East Jerusalem was an insult to the United States, David Axelrod, one of US President Barack Obama's closest advisers, said on Sunday.

“We have just started proximity talks, that is shuttle diplomacy, between the Palestinians and the Israelis, and for this announcement to come at that time was very destructive," he added.

Israel's announcement of plans to build the 1,600 housing units came March 10 during a visit by US Vice President Joe Biden that had aimed to encourage the first indirect Israeli-Palestinian talks since Israel's 2008-2009 offensive in Gaza.

Biden himself condemned the East Jerusalem building plan in a sharp statement issued in Jerusalem and Secretary of State Hillary Clinton told Netanyahu directly in a 43-minute phone call that the announcement sent a deeply negative signal about Israel's approach to relations with Washington.

Axelrod said both Biden's and Clinton's words reflected Obama's thinking, and he said he believed Netanyahu had received the message. 

-AFP/NOW Lebanon