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Announcement of construction in occupied East Jerusalem comes after release of Palestinian prisoners.
Officials approve plans to lay down infrastructure for 1,500 homes in illegal Jewish settlement in East Jerusalem.
Once a vocal critic of Israeli settlements, Obama is expected to be silent on the issue during his visit to the region.
Construction plan in Ramat Shlomo in East Jerusalem revived, prompting Palestinians to demand UN meeting over the issue.
The US has threatened to stop funding the Palestinian Authority, while Europe has said little about its reaction.
White House urges Israel and Palestinians to avoid unilateral moves that could jeopardize stalled peace talks.
Interior minister approves new construction in occupied East Jerusalem, linking them to country's economic protests.
Obama pressured PA negotiators to restart talks and refused to honour one of the Bush administration's key promises.
PA offered to concede almost all of East Jerusalem, an historic concession for which Israel offered nothing in return.
The Palestine Papers reveal startling contradictions between private and public disclosures of Palestinian negotiators.
Daud Abdullah
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Featured on Al Jazeera
Muslim volunteers face questioning and threat of arrest, while aid has been disrupted or blocked, charities say.
Six months on, outrage and sorrow over the mass schoolgirl abduction has disappeared - except for families in Nigeria.
ISIL combatants seeking an 'exit strategy' from Mideast conflict need positive reinforcement back home, analysts say.
European nation hit by a wave of Islamophobia as many young fighters join ISIL in Syria and Iraq.
 
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