Top Israeli officials are warning U.S. Secretary of State John Kerry that they will not be bullied into a peace deal with the Palestinians.
Israeli leaders reacted angrily Sunday after Kerry warned that if peace talks with the Palestinians fail, Israel could face growing international boycotts.
At the weekly Cabinet meeting in Jerusalem, Israeli officials took those remarks as a direct threat: make concessions to the Palestinians, or pay a heavy price.
Prime Minister Benjamin Netanyahu said international pressure on Israel harms peace efforts because it causes the Palestinians to harden their positions. He called attempts to impose a boycott on Israel "immoral and unjust."
The State Department issued a clarification, saying Kerry's remarks were taken out of context. It said the Secretary of State staunchly opposes any boycotts against Israel and was only referring to actions taken by others.
The European Union, for instance, has been threatening to boycott products from Jewish settlements, and several European companies have stopped doing business with Israeli companies operating in the West Bank.