Extra security has been laid on at the five star King David Hotel in Jerusalem as delegations arrived for the second round of Middle East Peace talks. Both sides are remaining cautious about breakthroughs.
The news that Israel gave the greenlight to thousands of new settlement homes in the West Bank and East Jerusalem has lowered expectations.
It also soured the atmosphere as twenty-six Palestinian prisoners were released by Israel on Tuesday in a goodwill gesture ahead of the talks. Many Israelis protested against the move in Tel Aviv.
The resumption of settlement building has angered many Palestinians. The Palestinian Liberation Organisation warned that negotiations could collapse at any moment.
The talks will go ahead under a media blackout, and the agenda has not been published but US Secretary of State John Kerry says all issues will be on the table.