Report: U.S. approves settlement construction

That's the report from the Israeli newspaper Ma'ariv, which claims the Obama administration agreed to allow Israel to finish construction on 2,500 buildings in the West Bank.

Israel estimates that 2,500 units are in the process of being built and cannot be stopped under Israeli law. Ma'ariv reported the units are in 700 buildings in various settlements and that Washington had agreed to their completion.

A report in the Yedioth Ahronoth daily, Israel's most popular newspaper, was more cautious, saying Israel and the United States were "close to an agreement on settlements". It also cited the same housing figures.

It actually seems pretty sensible to allow Israel to finish construction that's already in progress; I don't think that means Obama has abandoned his position on the settlements. But this story won't play well for him in the region. The Arabic-language media have already pounced: Al-Arabiya has a story up (عربي), for example, that says the U.S. is showing "leniency" on the settlements.