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Israeli Ambassador to the US, Michael Oren, has stated that relations between the two countries are at their lowest point in 35 years.
This statement was made in an Israeli media outlet.
Last week, Israeli officials announced the construction of 1,600 new settlements in East Jerusalem, which was occupied during Vice President Joe Biden's visit to the country.
Despite this, Prime Minister Benjamin Netanyahu stated that the settlements would not negatively impact Arab residents in East Jerusalem.
In a speech to the Israeli parliament, the Knesset, Prime Minister Netanyahu said he is in favor of peaceful negotiations and hopes that the Palestinian side will not present 'new conditions' for negotiations.
'Not a single Israeli government in the past 40 years has restricted the construction of homes in Jerusalem,' he said.
'Building homes for Jews in Jerusalem does not harm or benefit Arab residents in East Jerusalem.'
Meanwhile, the head of the European Union's foreign policy, Baroness Ashton, who was in the Middle East, stated that Israel's decision would threaten the possibility of direct negotiations with the Palestinians.
In the past, the Israeli government attempted to downplay tensions in their relations with the US.
However, in a phone conversation with Israeli consuls in the United States, Israeli Ambassador Michael Oren stated that 'this crisis is extremely serious and we are facing a difficult period in our relations.'
According to an Israeli news outlet, Ynet News, Ambassador Oren was called in by the US State Department and warned about the issue on Friday.
Oren is quoted as saying 'the relations between Israel and the United States are at their lowest point since 1975.'
In 1975, relations between the two countries were strained when US Secretary of State Henry Kissinger demanded that Prime Minister Yitzhak Rabin withdrawn troops from the Sinai Peninsula, which Israel occupied in the 1967 Six-Day War.
Israeli news outlet Haaretz reported that the ambassador's statement was also made by Israeli consuls who participated in the phone call.
Oren appeared 'tense and pessimistic,' according to the consuls quoted by Haaretz.
All consuls were instructed to lobby members of Congress and Jewish leaders, saying that Israel did not intend to harm the US.
'This instruction was issued from the highest level in Jerusalem,' Oren was quoted as saying by Haaretz.
The Israeli ambassador has yet to comment on the news from Israeli media.
The European Union, one of the four parties in the Middle East Quartet, had previously condemned Israel's decision to build homes in East Jerusalem.
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Israel-US Relations Reach Lowest Point in 35 Years BBC

