Updated

The U.N. secretary-general says progress toward peace between Israel and the Palestinians requires that Israel freeze its settlement-building.

Ban Ki-moon on Tuesday addressed the U.N. Security Council's periodic Middle East debate and called Israel's settlement activities "an affront to the Palestinian people."

Ban urges both sides to act now "to prevent the two-state solution from slipping away forever."

Dozens of people on both sides have died in four months of violence, which Israel blames on Palestinian incitement. Palestinians say the attacks stem from frustration at nearly five decades of Israeli military rule.

Palestinian Ambassador Riyad Mansour urged the council to act.

Israel's U.N. ambassador, Danny Danon, did not address settlement-building. He instead showed reporters what he called "terror dolls" that he said are used to teach hatred to Palestinian children.