On February 18, the Obama administration used its first veto on the UN Security Council against a resolution condemning Jewish settlement building in Palestinian territory and calling for its halt. The resolution, submitted by a group of 120 countries, mostly Arab and non-aligned nations, was accepted by the remaining 14 Security Council members. The US has used its veto 10 times since 2000, nine of which were against resolutions deemed to be “anti-Israel.”

During the Security Council meeting, US ambassador to the UN Susan Rice said the draft resolution would “harden the positions of both sides.” She said Washington had regrettably chosen to veto the resolution, adding that it could “encourage the parties to stay out of negotiations.”

In a bid to calm rising anger and perhaps seem less contradictory towards its own official stances on settlements, Rice emphasized that the veto did not signal US support for settlement building. “We reject in the strongest terms the legitimacy of continued Israeli settlement activity," she told the Council,” she said, however adding that the US did not believe the UN was the “correct place to try to resolve the decades-old Israel-Palestinian conflict.”

The veto, while not completely unexpected, was still a blow to the Palestinians, who determinedly held their ground, despite US pressure. In the weeks leading up to the UN vote, the United States made several comments about the UN being the wrong choice of venue for addressing such issues while keeping it vague as to whether it would actually veto the draft resolution or not. On the day of the vote, hundreds of Palestinians took to the streets of Ramallah carrying banners that read, “Veto settlements; vote justice.”

Also on the day of the vote, the Palestinian leadership came under immense pressure from the Obama administration not to go through with the resolution. US President Barack Obama is said to have called President Mahmoud Abbas in an hour-long conversation asking him to drop the resolution and accept a non-binding statement condemning settlement expansion. US Secretary of State Hillary Clinton apparently made a follow up call to Abbas asking the same request.

One unnamed Palestinian official said Obama warned Abbas that there would be “repercussions” should he go ahead with the vote.

"There will be repercussions for Palestinian-American relations if you continue your attempts to go to the Security Council and ignore our requests in this matter, especially as we suggested other alternatives," the official quoted Obama as telling Abbas. Palestinians understood these repercussions to refer to financial aid to the Palestinian Authority in addition to an incentives package the Obama administration spoke about earlier in the week.

The veto naturally caused angry responses within Palestinian circles, the leadership none the least.

“The American veto does not serve the peace process and encourages Israel to continue settlements, and to escape the obligations of the peace process," said presidential advisor Nabil Abu Rdainah.

In response to the question of whether the Palestinian decision to go forth with the veto despite American warnings posed a risk, Abu Rdainah answered, "The real risk is if we hesitate when the freedom of the Palestinian people is at stake."

Palestinian representative to the UN Riyad Mansour, also expressed disappointment in the US decision. "We fear ... that the message sent today may be one that only encourages further Israeli intransigence and impunity," he said.

PLO executive committee member Yasser Abed Rabbo said the leadership would now have to reassess the entire negotiating process, calling the US out on its stances with the peoples’ movements in the Arab world but not with the Palestinians. Abed Rabbo also said the leadership would continue its efforts in the General Assembly and in peaceful resistance on the ground.

European countries also in the Security Council and who voted for the resolution showed a clear stance on the subject. After the vote, France and Germany released a joint statement explaining their vote for the resolution "because our views on settlements, including east Jerusalem, are clear: they are illegal under international law, an obstacle to peace, and constitute a threat to a two-state solution. All settlement activity, including in east Jerusalem, should cease immediately."

In light of the drastic changes taking place in the region, with protests spreading to Libya, Bahrain, Algeria and Yemen, Palestinians are making changes too. On February 13, Prime Minister Salam Fayyad announced he would tender the resignations of his cabinet members and reshuffle the cabinet. President Abbas immediately appointed Fayyad to form a new cabinet within two weeks, which would, according to head of the Palestinian press office Ghassan Khatib, have radical changes.

The move comes days after chief Palestinian negotiator Saeb Erekat resigned his post after the Palestine Report papers scandal. Erekat said he took personal responsibility for the leaks, which were proven to come from his office.

During the whirlwind week, in which Palestinians also took to the streets calling for an end to the division between Hamas and Fateh, President Abbas announced on February 13 that municipal and presidential elections were to be held in July and September respectively.

However, on February 17, after much Hamas rejection to the proposed elections, Abbas said presidential and legislative elections could only be held if both the West Bank and Gaza Strip were included. Hamas has said that although it does not oppose the idea of elections, it would not agree to them before national reconciliation is achieved.

On February 17, three men were killed by Israeli army fire near Beit Lahyia. Ashraf Qteifan, 31, Talat Rawagh, 40 and Jihad Fathi, 20 were all killed after heavy gun and tank fire was heard in the area. The three were found dead at the scene.

In Jerusalem, the Israeli daily Haaretz said on February 15 that the west Jerusalem municipality is planning on building an Israeli army base in the eastern sector of the city on Mount Scopus. The report said the base would be built on 32 dunams of land between the Mormon University and Augusta Victoria Hospital.

Furthermore, on February 14, the same municipality ratified the construction of 120 housing units in Pisgat Zeev and Ramot settlements. The plan, which was approved in 2004, is part of a broader plan to build a total of 180 housing units in Ramot on lands belonging to Beit Hanina.

“It's not good news," said Meretz party member Pepe Alalu. "If the city of Jerusalem continues to expand neighborhoods beyond the Green Line – with or without the government's approval – it has apparently reached the conclusion that there is no way to advance the (peace) negotiations."

UN High Commissioner for Human Rights Naveh Pillay also expressed concern for the eastern sector of Jerusalem during a visit to the region. “The annexation of east Jerusalem contravenes customary international law. Because of its illegality, the annexation has not been recognized by any State. Under international law, East Jerusalem remains part of the West Bank and is occupied territory,” she said on February 15.

Pillay continued, “All settlement-related activities, and any legal or administrative decision or practice that directly or indirectly coerce Palestinians to leave east Jerusalem, including evictions, demolitions, forced displacements and cancelation of residence permits on a discriminatory basis, should be halted and restrictions on access to east Jerusalem by other West Bank inhabitants should be lifted.”