Occupied Jerusalem: The expiration of an Israeli moratorium on new construction in West Bank colonies has thrown fledgling Middle East peace talks into turmoil as Israel, the Palestinians and the US scramble to find a compromise that would keep the negotiations alive.

Curbs on new construction in colonies that had been in place for the past 10 months expired at midnight and Israel on Monday showed no sign of a new willingness to compromise on the issue. Palestinians regard colonies as a major obstacle to peace and have repeatedly said they will quit peace talks if Israel did not extend restrictions.

Palestinian President Mahmoud Abbas has deferred a decision on whether to quit the talks until at least next Monday, when he will confer with the 22 member states of the Arab League at a special meeting on the issue.