U.S.: We won't exert economic pressure on Israel

The White House on Thursday brushed aside any suggestion that the administration of U.S. President Barack Obama was planning to exert economic pressure on Israel to halt West Bank settlement construction.

U.S. State Department spokesman P.J. Crowley said Thursday that a remark made by deputy spokesman Robert Wood on Wednesday had been "misinterpreted."

"There had been some reporting after yesterday's briefing that I think represents some misinterpretation," he said. "There's been some reporting that the United States is contemplating financial or economic pressure against Israel. We are not contemplating such action. Clearly, this why [Middle East envoy] George Mitchell is in the region today, talking to all of the parties that we believe - about what they need to do to set conditions to resume negotiations so that all of these issues can be resolved through peaceful negotiations," Crowley told reporters.

When Wood was asked Wednesday by one pf the reporters at the daily briefing whether the U.S. was ready to exert financial pressure on Israel, to convince Prime MInister Benjamin Netanyahu's government to freeze the settlements, Wood answered: "It's premature to talk about that," setting off speculation that the U.S. might be considering such an option.

Tensions between Israel and the U.S. have risen recently following the revelation that Israel planned to build some 20 apartments for Jews in the Shepherd Hotel, in East Jerusalem's Sheikh Jarrah neighborhood. The U.S. has demanded that the project be halted, but Netanyahu told the cabinet meeting on Sunday that "Israel will not agree to edicts of this kind in East Jerusalem."

Meanwhile, Mitchell was planning to arrive in Syria on Saturday, the State Department announced Friday, for his second visit in Damascus since he took up his post.

The Obama administration had a series of meetings with Syria and hopes the diplomatic outreach will encourage Damascus to play a positive role in both the Middle East peace process and also in Iraq.

Syria is seen as a major player in this process because of its support for the Palestinian militant group Hamas, which controls the Gaza Strip, as well as the country's intermittent peace talks with Israel.

Turkey has said it is prepared to resume mediating indirect peace talks between Syria and Israel.