Mideast crisis looms over Israeli settlements

Israeli Prime Minister Benjamin Netanyahu chairs the weekly cabinet meeting in Jerusalem, Sunday, Sept. 5, 2010. Israeli aircraft bombed three Gaza tunnels, killing two Palestinians and wounding a third, Hamas security officials said Sunday. (AP Photo/Menahem Kahana, Pool)

September 5, 2010 1:09:19 PM PDT
Just days after Mideast peace talks began in Washington, the first major crisis is already looming: Israel hinted Sunday it will ease restrictions on building in West Bank settlements, while the Palestinian president warned he'll quit the talks if Israel resumes construction.