Israeli security forces evacuated about 100 Palestinians early from tents pitched in an area of the West Bank as a protest against Israeli plans to build a settlement there.
Israel is prepared to make "painful compromises" for peace with the Palestinians, including the handover of land they seek for a state, Prime Minister Benjamin Netanyahu told the US Congress.
Israel decided to accelerate Jewish settlement building and withhold Palestinian Authority funds, moves likely to further hold up international efforts to revive peace talks.
Israeli soldiers fired tear gas and rubber bullets at Palestinians who threw rocks and firebombs towards them in a West Bank clash that erupted after a funeral for a protester killed a day earlier.