Washington: The White House sharply criticised Israel on Wednesday over its plan for a new settlement building in the West Bank that the White House says undermines the peace process and contradicts assurances from Jerusalem.

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"We did receive public assurances from the Israeli government that contradict this announcement," White House spokesman Josh Earnest said at a news briefing. "I guess when we`re talking about how good friends treat one another, that`s a source of serious concern as well."