Israel- Palestinian Peace talks underway The peace talks between Israel and the Palestinians mediated by the US are underway in Egypt as tensions over the issue of settlements threaten the success of this initiative. Israeli Prime Minister Benjamin Netanyahu and Palestinian President Mahmoud Abbas are participating in the talks. US Secretary of State Hillary Clinton, US West Asia Envoy George Mitchell and Egyptian President Hosni Mubarak, are also present at Egyptian red sea resort of Sharm al Sheikh. The talks were started in Washington on 2nd of this month after the persuasion of US President Obama. Earlier, US Secretary of State called it a moment of great opportunity for the two parties. She told reporters on way to Egypt that time is ripe for an agreement for a number of reasons and that there is no way that the legitimate needs of the parties can be fulfilled outside of a peace accord. Analysts say, tensions exists between Israel and the Palestinians on the crucial issue of Jewish settlement building in the West Bank and east Jerusalem. Israeli officials have indicated that they will not extend a settlement freeze due to expire on September 26, but the Palestinians have warned they will quit the talks if construction work continues on occupied land.