Israel's ambassador to the United States has said that relations between the two countries face their worst crisis for 35 years. Israeli Media today reported that Michael Oren had told a conference call with Israeli consuls general in the US that the crisis was very serious since 1975 and Israel is facing a very difficult period in relations. Last week Israeli officials announced the building of 1,600 new homes in occupied East Jerusalem while US Vice President Joe Biden was visiting the country. Yesterday, a top aide to US President Barack Obama said Israel's announcement of the plans to build 1,600 homes for Jews in East Jerusalem was destructive to peace efforts. David Axelrod said the move, which overshadowed a visit to Israel by US Vice-President Joe Biden, was also an insult to the United States.