As the International fallout begins following the controversial announcement from Israel that it is planning to allow 3000 new homes to be built in the controversial E1 area of East Jerusalem.
Britain has said it intends to make a decision today whether to withdraw its ambassador Matthew Gould Britain's first Jewish ambassador to Israel in 2010. Over the country's settlement building plans and the suspension of trade agreements. Government sources said the Foreign Office is considering what action to take saying "all options are on the table". Any diplomatic action by Britain is likely to be taken in concert with other European powers, with France currently playing a crucial role in coordinating joint action.
This move which will effectively cut off Palestinians in East Jerusalem from the rest of the West Bank and is sure to inflame Gaza and Israel tensions, coming just days after a bitter ceasefire agreement between the two countries.
As well as Britain, by the head of the United Nations Ban Ki-moon described the move as an "almost fatal blow" to peace hopes.
Written and presented by Ann Salter