The US offered a package of incentives to Netanyahu in order to get a short term extension of the Construction freeze. The (reasonable) idea was to negotiate quickly the border between Palestine and Israel in the West Bank, so that Israel will be able to build, but only in her allotted area. The incentives were fabulous: higher annual grant to Israel, no pressure for further extension, and a 1-year veto guarantee against all anti-Israel UNSC resolutions (including referring Israelis to the Hague. But Obama saw that Netanyahu was only playing games, so now the incentives are WITHDRAWN. This is really a big loss by itself for Israel. But there probably is much worse to come. Obama wanted to enhance his standing among American Jews before the elections (in 3 weeks), by showing that the peace process is not dying. Netanyahu didn't help so in 3 weeks it will be time to get even. I expect serious US pressure, the like of which was not seen since Jim Baker told Shamir to call him when he is ready for peace.
UN: Gaza could be 'uninhabitable' by 2020 if trends continue (AP)
from the article: U.S.: We want clear path, not two-month delay of peace process deadlock