Hillary Clinton
Media playback is unsupported on your device
Video

Hillary Clinton warns Israel over peace 'setback'

The US has criticised Israel's decision to authorise the construction of 3,000 more housing units in occupied East Jerusalem and the West Bank.

Speaking in Washington, Secretary of State Hillary Clinton said that "these activities set back the cause of a negotiated peace". The White House had earlier described the proposal as "counter-productive".

The Israeli decision followed a UN General Assembly vote to upgrade the Palestinians' status to non-member observer state.

Go to next video: Israel warns on Palestinian vote