Israeli Prime Minister Benjamin Netanyahu says Jewish building in east Jerusalem does not hurt the city's Palestinian residents.

Speaking to Israel's parliament, Netanyahu said the construction of homes for Jews in the city's eastern sector "in no way" hurts Palestinians.

Israel drew angry reactions from the U.S. and the Palestinians by announcing the construction of 1,600 units in an east Jerusalem neighborhood during a visit by U.S. Vice President Joe Biden last week.

The decision has sparked the worst feud between Israel and the U.S. in recent memory.

In his speech, Netanyahu gave no indication he would cancel the project or limit construction in east Jerusalem.