World Bulletin/News Desk

Reports that Washington is contemplating sanctions against Israel are “completely unfounded,” the White House said Monday.

“The reports that the administration might be contemplating sanctions against Israel are completely unfounded and without merit,” press secretary Josh Earnest told reporters.

He was referring to a report in the Israeli newspaper Haaretz that said the Obama administration is considering sanctions against its long-time ally for its unabated construction of settlements in the West Bank. The article cited unnamed Israeli officials as its source.

The U.S.-Israel relationship has been strained over the latter’s continued policy of settlement building on land that Palestinians say is central to a future state.

“What hasn’t changed are the significant concerns that we have with the Israelis continuing to pursue settlement activity,” Earnest said emphasizing that such actions are “counterproductive” and diminish trust between the parties.

“That’s something that we’re going to continue to criticize and be clear about – again, only because we believe it is so clearly in the interests of both the Israeli people and the Palestinian people for both sides to sit down to the negotiating table and try to resolve their differences directly,” Earnest added referring to settlement construction.