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Yahoo! My Yahoo! Mail More Yahoo! Services Account Options New User? Sign Up Sign In Help Yahoo! Search web search Home Singapore Asia Pacific World Business Entertainment Sports Technology Africa Europe Latin America Middle East North America Israeli PM fails to resolve settlement spat with US AFP - 2 hours 6 minutes ago Send IM Story Print Israeli Prime Minister Benjamin Netanyahu, seen here on March 21, has put on a brave face as he flew home to a storm of derision having failed to resolve a bitter row with Washington over settlement building. JERUSALEM (AFP) - – Israeli Prime Minister Benjamin Netanyahu put on a brave face as he flew home to a storm of derision on Thursday having failed to resolve a bitter row with Washington over settlement building. Netanyahu insisted ahead of his departure that the two close allies had made "progress" but his trip served to illustrate the growing divide between Israel and Washington on Jewish settlement activity. Despite meetings with US President Barack Obama and other top officials, Netanyahu appeared unable to tamp down the row over the construction of 1,600 new settler homes in annexed Arab east Jerusalem. Ahead of his scheduled departure, Netanyahu cancelled planned interviews with reporters, Israeli media said, after having none of the customary public appearances, even for photo opportunities, with US officials during his trip. Israel's Maariv newspaper called the visit a "humiliation" and said Netanyahu had "received in the White House the treatment reserved for the president of Equatorial Guinea." Other media reported that the carefully coordinated dressing down of Netanyahu was accompanied by demands for wide-ranging measures including the extension of a partial settlement halt and the release of hundreds of Palestinian prisoners as a goodwill gesture to president Mahmud Abbas. "Everyone understood that this time Obama had Netanyahu with his back to the wall," Israel's mass-selling Yediot Aharonot said. Obama asked Netanyahu during two high-stakes meetings late on Tuesday to take specific "confidence-building" steps to boost indirect talks with the Palestinians, but officials remained vague on the details. White House spokesman Robert Gibbs said the discussions were "honest and straightforward," a diplomatic euphemism hinting at tensions, after Netanyahu went into the talks having laid down a hard line on settlement construction in east Jerusalem. The White House had not even characterised the talks until Gibbs spoke, 15 hours after the Israeli prime minister left the presidential residence, and, unusually, did not release an official photo of the closed-door talks. The Israeli leader on Tuesday said US demands for a settlement freeze could delay the resumption of Middle East peace talks for a year, a day after a fiery speech in which he said: "Jerusalem is not a settlement." But as he left Washington, Netanyahu insisted the two sides had "found a balance between the traditional policy followed by all Israeli governments and our willingness to find ways to revive the the peace process." He was expected to meet senior ministers later on Thursday to discuss Washington's demands. A day after his meetings with Netanyahu, Obama discussed the latest tensions in the Middle East with British Prime Minister Gordon Brown, French President Nicolas Sarkozy and German Chancellor Angela Merkel, the White House said. Chronology: US-Israeli relations since 1991 The talks by secure video link also focused on another key issue that concerns Israel -- Iran. Many Israelis fear that the growing rift with Washington could hinder progress on containing Iran's nuclear programme, which Israel views as its greatest strategic threat. Tehran insists the programme is peaceful. The spat erupted after Netanyahu's government announced the construction of 1,600 new housing units in east Jerusalem as US Vice President Joe Biden visited the region earlier this month to boost peace talks. The Palestinians, who view east Jerusalem as the capital of their promised state, have refused to meet face-to-face with Netanyahu without a complete freeze of settlement construction in the occupied territories. The United States has warned such construction undermines its credibility as a mediator, and despite Netanyahu's apology over the timing of the announcement the dispute has rumbled on for two weeks. As Netanyahu met Obama, it emerged Israeli officials had given final approval for 20 new settler units in east Jerusalem, annexed by Israel after the 1967 Six Day war in a move not recognised by any other government. UN Secretary General Ban Ki-moon condemned the project, saying that the planned apartments "are illegal under international law" and that all settlement activity "must stop." And Jordan, one of just two Arab countries to have signed a peace treaty with Israel, said it was "playing with fire." 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