U.S.-Israeli relationship takes new direction

"The replenishment of ammunition and weapons supplies in the event of another expected conflagration in the Gaza Strip or Lebanon is a matter of American goodwill," Caspit said.

Few expect Washington ever to go as far as to hurt Israel's defences, but it does have other diplomatic pressure points.

NATURAL GROWTH

Yet appeasing the United States by abandoning a settlement policy that allows "natural growth", construction which Israel says is to accommodate growing settler families, could tear apart Netanyahu's two-month-old right-leaning coalition.

"If he gives up on natural growth, it will break his coalition," the Israeli political source said.

"Netanyahu is not willing to pay the price. The outposts are all he can give," the source said of dozens of small settlements which Israel has long pledged to remove under a 2003 U.S.-backed "road map" to peace with the Palestinian.

Defence Minister Ehud Barak, sent by Netanyahu to the United States this week to meet with government officials to try to ease friction, has promised to move against two dozen of the outposts, some only clusters of caravans on isolated hilltops.

"The situation is very gloomy. They are waiting to see what Barak can achieve in Washington," the source said.