Jerusalem (CNN) -- Israeli and Palestinian leaders will continue peace talks Wednesday alongside U.S. Secretary of State Hillary Clinton as tensions mount over the possibility of new Israeli settlements in the West Bank.
Palestinians have said construction would torpedo the negotiations, but Israel has said some construction is likely.
On Wednesday, Clinton said she was glad to be back in Jerusalem and participating in peace talks.
"I'm well aware of the obstacles that stand in the way of peace," she said. "I know that this long history of conflict and distrust hangs over everything. But I see the future that can deliver on the aspirations of Israelis and Palestinians".
The latest round of talks started in Egypt on Tuesday, when Palestinian Authority President Mahmoud Abbas and Israeli Prime Minister Benjamin Netanyahu began "a serious discussion on core issues," said U.S. special envoy George Mitchell, who is attending the negotiations.
"They have agreed to begin first on working to achieve a framework agreement for permanent status," Mitchell said Tuesday. "That work is now well under way".
CNN
