The United States Sunday joined a rising chorus of disapproval of Israel's newest settlement move in East Jerusalem, saying it was "very concerned" about Israel's demolition of the historic Shepherd's Hotel to make way for new residences, dpa reported.
In a statement, Secretary of State Hillary Rodham Clinton said the move contradicted "the logic of a reasonable and necessary agreement" between Israel and the Palestinians on the status of Jerusalem.
"This disturbing development undermines peace efforts to achieve the two state-solution," she said.
Israeli contractors on Sunday began the partial demolition of the historic building in occupied East Jerusalem to make way for a Jewish apartment complex, despite demands from the United States and others to halt the project.
Earlier Sunday, both the European Union and Jordan condemned the step.
Clinton noted that the lack of peace in the Mideast "harms Israel, harms the Palestinians, and harms the US and the international community."
"We will continue to press ahead with the parties to resolve the core issues, including Jerusalem, in the context of a peace agreement," she said in the statement.