The timing was stupid. Heads should roll. But on principle Israel is not doing anything different from what Clinton and the Americans have long known about and supposedly agreed with i.e. Israel has not put a freeze on building in East Jerusalem. The Americans have moved the goal- posts unfairly. As for the Palestinian Arabs who truly don't want a state if it means living next to a Jewish one they continue to profit in their own idiotic way by not doing anything but complaining and threatening.
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Hamas: Agreement reached for return to calm on Gaza border with help of Egypt, Qatar, UN (Haaretz)
from the article: Jerusalem council drops construction, apparently due to U.S. crisis