Israel and Palestinian leaders resume peace talks led by Clinton

The talks are expected to be held at the Egyptian resort of Sharm el-Sheikh. Clinton also restated for Israel to extend its moratorium on settlement construction in the West Bank, which is due to expire on 26 September. The Palestinian authority had said it will walk out of peace talks if building on occupied territory resumes.

Israeli Prime Minister Benjamin Netanyahu said last week that thousands of the new homes planned for the West Bank might not be built. He also hinted that the moratorium on all constructions might not be renewed. The Palestinian counterpart reiterated there will be no “half solutions”

"If it chooses any kind of settlement building, this means that it has destroyed the whole peace process and it would be fully responsible for that," Saeb Erekat said.

Negotiators are facing another problem as only one part of the Palestinian territories is represented because the Islamist movement Hamas, which has power over the Gaza strip, opposes the talks.

Clinton today will hold separate talks with Mr Netanyahu and Palestinian Authority President Mahmoud Abbas before hosting a three-way meeting with both leaders.

Another trilateral meeting will take place in Jerusalem on Wednesday.