Raising the stakes in deadlocked U.S.-sponsored peace talks, Saeb Erekat said it was clear from the latest announcement of building plans that Israel wants settlements, not peace.

"Israeli unilateralism is a call for immediate international recognition of the Palestinian state," he said in a statement.

The United States swiftly repeated its opposition to any unilateral moves to recognize Palestinian statehood.

"Both sides have to avoid unilateral actions that really poison the atmosphere and prevent progress toward negotiations," State Department spokesman P.J. Crowley said.

The world paid little attention when the late Yasser Arafat declared a Palestinian state in 1988. But political winds have shifted and Israel today is seriously concerned that Palestinian President Mahmoud Abbas might win recognition.

Reuters