The decision by the United States to veto a United Nations Security Council resolution condemning Israeli settlement construction, was met with a sigh of relief by Israel but with anger among Palestinians.

Palestinian Fatah supporters take part in a rally to support Palestinian President Mahmoud Abbas and to protest the U.S. veto, in the West Bank city of Ramallah, on Feb. 20, 2011. About 2000 Palestinians demonstrated Sunday against the U.S veto in the United Nations Security Council against a draft resolution condemning Jewish settlement in the occupied Palestinian territories. [Fadi Arouri/Xinhua]

The resolution condemned Israeli settlement building on the West Bank and in east Jerusalem, areas that Israel captured in the 1967 war but are seen by the Palestinians as the territory they want for their state.

The U.S. veto blocked a unanimous vote on the resolution by the 15-member Security Council.

Israeli and Palestinian analysts that spoke to Xinhua said that they were not surprised by the U.S. decision, but differed on what the consequences will be for an American role in future negotiations.

American-Israeli bond

"Israel deeply appreciates the decision by President Obama to veto the Security Council Resolution today," Israeli Prime Minister Benjamin Netanyahu said in a statement released after the vote, and said that, "Israel remains committed to pursuing comprehensive peace with all our neighbors, including the Palestinians."

"We seek a solution that will reconcile the Palestinians' legitimate aspirations for statehood with Israel's need for security and recognition," added Netanyahu.