The US and Israel failed to heal their deepest dispute in decades as a two-day visit by Israeli prime minister Benjamin Netanyahu ended late last night without resolving a rift over new Israeli housing planned in east Jerusalem.
Before leaving the US, Mr Netanyahu claimed some progress had been made in defusing what has become an unusually public spat between close allies.
"I think we have found the golden path between Israel's traditional policies and our desire to move forward toward peace," the Israeli leader said as he boarded his plane for the trip back home.
However, US officials said last-minute talks between Netanyahu and US Mideast peace envoy George Mitchell had not ended tensions over Israeli construction in occupied East Jerusalem.
US and Israeli officials said the talks were aimed at getting Israeli-Palestinian peace talks back on track. Mr Netanyahu had extended his stay by hours to work on a deal, but the talks ended last night without any announcements, one official said.
The two sides had hoped to come up with mutually acceptable ideas to improve an atmosphere poisoned by announcements of the new housing projects on Palestinian land. An Israeli official said Israel wants to see talks with the Palestinians resume quickly. The evening talks were intended to promote that goal, the official claimed.
Palestinian representatives withdrew from proposed talks two weeks ago, after Israel revealed plans to build 1,600 homes in the east Jerusalem settlement of Ramat Shlomo.
The project was approved during a visit by US vice-president Joe Biden in a move which Washington branded an insult.
Mr Netanyahu twice pushed back his departure from Washington after talks with President Barack Obama, Mr Biden and Secretary of State Hillary Clinton failed to reach consensus on what Israel could do to repair damage caused by the housing announcements.
During Mr Netanyahu's visit, "the US made clear it is looking for steps to increase confidence and show commitment to the process," said Mark Toner, the deputy State Department spokesman.
Earlier yesterday, the Obama administration challenged Israel to explain yet another announced a further plan to expand settlement in east Jerusalem, the same issue that soured US-Israeli relations ahead of Netanyahu's three-day visit to Washington this week.
The United States sees continued Israeli building on occupied Palestinian territories as a provocation that makes peace negotiations harder.
Mr Netanyahu offered no concessions during his visit on an earlier plan to build 1,600 homes for Jews in the occupied part of the city. Netanyahu's government has refused to back off steady expansion of Jewish neighborhoods in the majority Arab city section.
An aide to Mr Netanyahu said the prime minister was caught off guard by the most recent announcement – yesterday - that the Jerusalem municipality has approved a further 20 new apartments for Jews.
Mr Mitchell returned to the US on Tuesday from talks with Palestinian leader Mahmoud Abbas on the West Bank, apparently without agreement on when the Palestinians would be willing to open a new round of US-mediated talks.
US officials said discussions about the peace talks continue, and Mr Mitchell plans to return to the region after the Jewish Passover holidays, which begin next week.
In an exceptional step, no photographs of Mr Netanyahu's two meetings with Mr Obama at the White House were permitted, and neither side has provided a substantive account of the session.
Although they met for a total of two hours, the White House did not issue a formal statement on what was discussed in either meeting. "I think it comes as a great shock to you and me, but not everything the president does is for the cameras and for the press," said White House spokesman Robert Gibbs.
Mr Gibbs would say only that the discussions were "honest and straightforward" and that Mr Obama had urged Mr Netanyahu to take a series of steps to build confidence in Israel's ability to take part in peace talks with the Palestinians. He would not elaborate about those steps.
Meanwhile, a White House spokesman, Tommy Vietor, said the White House continues to believe that Israeli construction in east Jerusalem is destructive to the Mideast peace process. He said the US is asking for "clarification" of the latest building plan, and he urged both the Israelis and Palestinians to refrain from acts that could undermine trust.