The Palestinian President says he will not accept a U.S.-backed proposal for resuming peace talks with Israel unless it halts Israeli housing construction in disputed East Jerusalem.

Mahmoud Abbas’ position further complicates American efforts to restart peace talks. The Palestinians say there can’t be peace talks if Israel continues to build homes in captured territories where they want to establish an independent state.

The U.S. has been pressuring Israel to halt West Bank settlement construction for 90 days to bring the Palestinians back to negotiations.

Israeli hardliners say they won’t accept the proposal if it includes East Jerusalem — the section of the holy city claimed by both sides.

In Cairo, Mr. Abbas said any construction freeze must include East Jerusalem “first and foremost.”

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