A 'settlement freeze' is just another precondition set by Arab states to derail, or at least delay, peace talks. The true objection the Arabs have is not the Jewish settlements in the West Bank, but the settlements along the Mediterranean coast, in the Galilee, the Negev and of course, in Jerusalem.
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Netanyahu: U.S. Vice President Joe Biden may visit Israel in coming weeks (Haaretz)
from the article: Top U.S. official: We won't accept partial settlement freeze