EU weighs new methods to coax Israel back to Middle East peace talks, might hit at trade

European Union officials say the EU is assessing new ways to push Israel back to the peace negotiating table with the Palestinians for a deal based on a two-state solution.

The EU is exploring new diplomatic terrain and could consider ways to discourage Europeans from buying products from Israeli settlements it considers illegal.

Israeli Prime Minister Benjamin Netanyahu's election rhetoric has fueled doubts about Israel's commitment to a two-state solution — a cornerstone of EU and U.S. policies for ending the Middle East conflict. An EU diplomat said the Israeli premier's remarks could amount to "a fundamental breach" of policy.