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Israel is moving forward with plans to build more settlements in east Jerusalem--a move that's straining relations with the United States. But in a Senate Armed Services Committee hearing, U.S. General David Petreaus says relations with Israel are crucial for peace throughout the Middle East.

GEN. PETRAEUS: “We keep a very close eye on what goes on there, because of the impact that it has, obviously, on that part of CENTCOM that is the Arab world, if you will. And, in fact, we’ve urged at various times that this is a critical component." 

Fox News contributor Judith Miller and New York Times columnist Thomas Friedman agree-- bad relations with Israel will affect America's image in the Arab world.

"It's going to make it seem as if Israel is bullying us, can push us around, and General Petreaus was warning about the impact of that on Iran and America's other enemies which we face in Afghanistan and in Iraq."

"In the Middle East, people can guess your power from a hundred paces. They have to. That's how they survive. And if we look weak, vis-a-vis our closest ally in the region, that will have regional implications."

A columnist for The Jerusalem Post looks at the underlying reason for the soured relations. He points to Israeli Prime Minister Benjamin Netanyahu as facilitating the problem.

"He did not enjoy a reservoir of trust going into this crisis, and it’s not just with President Obama but also with a pair of former U.S. senators with staunch pro-Israel records. ...If he manages to alienate them, he’s got major tzoris [problems] in managing the bilateral relationship."

Daniel Levy of the New America Foundation tells CNN the dispute will resolve itself once Israel and Palestinians agree on a formal border.

"Every crisis is an opportunity, John, and in this context I think the thing would be: don't necessarily make this about a particular housing development, as problematic as it may be. Because of this, we now have over 500,000 Israelis beyond the old border of the green line. Make it about more, make it about a plan for getting a border. Once there's a border, we no longer have these disputes over this settlement or that settlement.” 

Veteran military and foreign affairs analyst Mark Perry agrees, telling Democracy Now everyone needs to get back to formal peace talks.

"If we can solve this problem, if we can push both sides to the table, if we can come up with some kind of solution, this helps us immensely on the war on terror. If it doesn't, it's another excuse for the terrorists, the Jacobins, the hardliners, the let's-burn-it-down-and-start-over crowd, to really go up against us. This is an arrow in their quiver, and we should be able to take it away."

For more background, check out our earlier coverage on Vice President Joe Biden's most recent visit to Israel.

Writer: Brandon Twichell

Producer: Newsy Staff