Watch part twoIssues that have been holding back peace between Israelis and Palestinians, such as the question of Jerusalem as a capital and the future of Israeli settlements in the Occupied Territories, are once again flaring up. Several thousand Israeli settlers demonstrated recently in Jerusalem.They denounced Benyamin Netanyahu, the Israeli prime minister, for a perceived lack of support in ordering a freeze on some settlement building a few weeks ago. Israeli leaders are also displeased with a recent European Union document suggesting that East Jerusalem should be the capital of a future Palestinian state.Is the US on the right track with its policy on the Israeli-Palestinian peace process?
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