Jerusalém - With pressure on from global mediators Friday, Israel and the Palestinians appeared likely to resume American-mediated indirect peace talks despite a flap over east Jerusalem construction.

But hopes for results remain dim. There's virtually no expectation here that hard-line Prime Minister Benjamin Netanyahu can reach a deal with the Palestinians that eluded his more dovish Israeli predecessors.

Meeting in Moscow on Friday, the so-called Quartet of Mideast peacemakers, which includes the United States, Russia, European Union and United nations, called on Israel and the Palestinians to return to negotiations with a goal of reaching a peace deal that would create a Palestinian state within two years.

In a strongly worded statement read by U.N. Secretary General Ban Ki-moon, the Quartet reiterated its condemnation of Israeli construction in disputed east Jerusalem, promised to monitor developments there closely and renewed its call for a complete halt of all settlement activity.

But it did not escalate the feud over Israel's plans, announced last week, to build 1,600 new apartments in an east Jerusalem Jewish neighborhood. Speaking in Moscow, U.S. Secretary of State Hillary Rodham Clinton also suggested Washington wanted to move beyond the feud to get planned Israeli-Palestinian proximity talks rolling.

The announcement of the new construction, during a visit to Jerusalem last week by Vice President Joe Biden, angered Washington. Clinton dressed down Netanyahu earlier this week, demanding concrete steps from Israel to get talks going. Clinton reportedly asked Israel to revoke its recent building decision, roll back on plans for new Jewish homes and make goodwill gestures such as releasing Palestinian prisoners and lifting some West Bank roadblocks.

On Friday, after a telephone conversation with Netanyahu, she took a positive tone. "What I heard from the prime minister in response to the requests we made was useful and productive," Clinton said.