Israel confirmed on Friday that the United States asked it to explain a plan to build new homes on occupied land in the Jerusalem area, a move Palestinians say could wreck peace talks launched just last week in Washington.

A senior aide to Palestinian President Mahmoud Abbas said asking for explanations was not enough and demanded that U.S. President George W. Bush's administration force Israel to abide by an agreement to halt all Jewish settlement activity. ...

The United States agreed at Annapolis to adjudicate on how far each side was meeting commitments. Israel's main demand from the Palestinians is that Abbas curb militant attacks on the Jewish state before any final peace settlement is agreed.

Abbas aide Nabil Abu Rdainah said Washington must act now: "Asking them to explain is not enough. The Americans must pressure the Israeli government to stop settlement activities.

"Settlements are an obstacle for the negotiations and peace process. They weaken trust between Israelis and Palestinians."

On Thursday, after three days in which the U.S. State Department had avoided substantive comment on the matter, a U.S. official said: "We don't want any steps taken that would undermine the confidence of the parties. This is an issue that we have been concerned about and we have sought clarification."

U.N. chief Ban Ki-moon said: "This new tender for 300 new homes in eastern Jerusalem, so soon after the Annapolis Middle East peace conference, I think is not helpful."

Daniel Levy, an analyst at the New America Foundation, said the incident showed Washington needed to pay closer attention: "It indicates the need for the kind of U.S. babysitting that's been absent seven years and apparently is still not there." ...

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