JERUSALEM — In the face of American demands that Israel halt settlement construction in the predominantly Palestinian West Bank, in line with the 2003 “road map” for Middle East peace, Israeli leaders are floating the idea of accepting a three-to-six-month freeze on construction in all settlements.
Israeli Defense Minister Ehud Barak is scheduled to meet aides to President Barack Obama today in the U.S. in a bid to find a compromise.
The proposal under consideration would allow Israel to continue to build thousands of West Bank homes already under construction. On Monday, Israel unveiled plans to build 50 more homes at a West Bank settlement.
The State Department hasn’t ruled out compromise but reiterated the U.S. view of Israel’s obligations. “A freeze on all activity relating to settlements, including natural growth, is what it says in the road map,” said spokesman Ian Kelly.
Obama’s dilemma in confronting a key ally is complicated by Arab nations’ insistence on a more-than-cosmetic settlement freeze before they make gestures that might help restart peace talks. If a deal can’t be worked out, analysts say, Obama has several ways to ratchet up pressure on Israel.
Short of freezing loan guarantees for Israel, the United States could try to enlist broader American Jewish support or embrace European efforts to penalize Israeli exports made in West Bank settlements.
The United States has for years imposed financial penalties on Israel for settlement construction. They have had little practical effect, but the process gives Obama a precedent for imposing sanctions.
“They can make the whole settlement project expensive in terms of embarrassment and money,” said Roni Bart, a research fellow at Israel’s Institute for National Security Studies.



