Jerusalem - Israel on Tuesday said remarks by the U.N. Mideast envoy “distort history” after he declared that Israel’s settlement-building is a main obstacle to peace with the Palestinians.

The spat drew new attention to Israeli settlement construction in the West Bank and east Jerusalem, which has continued to move forward during a more than two-year freeze in Mideast peace efforts. The Palestinians seek both areas as part of a future independent state and say that the construction undermines hopes for a peace deal.

In a briefing to the Security Council on Monday, U.N. Mideast envoy Nicolay Mladenov said that settlement expansion by the Israelis is among the biggest obstacles to peace with the Palestinians.

Mladenov listed Israeli plans to build hundreds of new houses in the West Bank and east Jerusalem, as well as steps Israel is taking to legalize outposts that were built without permission by settlers.... Read More: VIN