U.S. President Barack Obama now is facing serious challenges over dealing with the settlement issues between Israel and Palestine.

The debate over the construction of settlements is going fierce and settlement in the West Bank has continued to expand at a rate higher than the population growth inside Israel, according to peace movements.

Obama calls for a complete halt in the expansion of settlements, while Israeli Prime Minister Benjamin Netanyahu has rejected Obama's call, saying the construction of settlements as natural growth and it should be enshrined in any peace deal.

Obama asked the Israelis, why have you not stopped construction after you have pledged to do so. The Israelis answered, you prohibited horizontal construction, not vertical construction.

Israeli Prime Minister Benjamin Netanyahu intends to continue the natural growth of existing settlements but will not build new ones, officials say.

Palestinians fear settlements will isolate formerly Arab-ruled East Jerusalem, which Palestinians want as their capital and said they will not return to peace talks with Israel until it halts settlement expansion and Netanyahu endorses the establishment of a Palestinian state.

Israel proposes drawing a border with the Palestinian state to place most settlers' homes inside Israel and giving the Palestinians land in return elsewhere.

While Palestinian leaders say land swaps may be possible. But the issue will be particularly sensitive in negotiating the future status of Jerusalem.

There was also the news of the Israeli army distributing leaflets to Palestinian shepherds warning them to evacuate their homes as [military] exercises were taking place in the vicinity. But even if the shepherd could have evacuated his family, how could he evacuate a herd of sheep? And to where?

It would be impossible for peace negotiations to be conducted against the backdrop of such disputes otherwise these talks would last a hundred years before they even begin to deal with the key issues.

Obama cannot treat issues such as this with aspirin, and the larger battle is yet to begin.

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