Abbas issues settlement ultimatum

Palestinian president Mahmud Abbas on Wednesday ruled out renewing peace negotiations with Israel without a freeze of Jewish settlement activity.

"The return to negotiations depends on Israel adhering to the terms of reference of peace and that includes halting all settlements, including natural growth and including Jerusalem," Abbas told tens of thousands of people gathered in Ramallah to mark the fifth anniversary of iconic leader Yasser Arafat's death.

The embattled Abbas also demanded the removal of all Jewish settlements, which today are home to nearly half a million Israelis.

"It is our right to demand the removal of all settlements from our land because they are illegal," Abbas said.

The issue of Jewish settlements is one of the thorniest in the decades-long Israeli-Arab conflict and the main stumbling block in stalled US efforts to restart peace negotiations.

The international community considers Jewish settlements in the Israeli-occupied West Bank, including east Jerusalem, to be illegal.