Palestinian President Mahmoud Abbas has said he is ready to resume peace talks with Israel - if the country halts settlement construction.
On Wednesday, Abbas said he would be prepared to resume talks "within a specific time frame and on the basis of international law."
His comments came after a speech by US Secretary of State John Kerry, outlining America's rationale behind a decision not to veto a UN resolution demanding further Israeli settlement building be halted.
The speech was earlier described by Israeli PM Benjamin Netanyahu as a "great disappointment".
Downing Street said it was "not appropriate" for John Kerry to brand the Netanyahu administration as the "most right wing in history".
The Israeli prime minister said the country would stop funding for a number of UN bodies deemed as 'hostile' to Israel.