AMMAN – US envoy George Mitchell on Monday urged Israel and the Palestinians to observe a period of calm to rescue talks thrown into jeopardy by a dispute over new settlement plans in East Jerusalem. Israel's announcement during a visit by Vice President Joe Biden two weeks ago that it would build 1,600 homes for Jews in occupied land near East Jerusalem embarrassed Washington and threatened planned indirect talks with the Palestinians. "On behalf of the United States and the president, I urge all sides to exercise restraint. What is needed now is a period of calm and quiet, in which we can go forward in the efforts we are engaged," Mitchell told reporters after meeting Palestinian President Mahmoud Abbas in Amman. The settlement issue, and growing violence in the occupied West Bank where Israeli forces have killed four Palestinians in two days, is threatening renewed efforts by Mitchell to get peace talks under way. Mitchell said Abbas expressed concern about the latest violence but was still optimistic that indirect discussions, known as "proximity talks," would begin soon between the two sides after a 15-month hiatus in direct negotiations. "We discussed a full range of issues, including our common desire to enter the proximity talks at the earliest possible time in a manner which we hope would lead to direct negotiations," he added. Abbas was quoted by the Palestinian news agency WAFA as warning the Israelis about the repercussions of violence that has exacerbated tensions. The Israeli army shot dead this weekend two 19-year-old men who it said had tried to stab a soldier on patrol near Nablus in the occupied West Bank. The news agency quoted Abbas urging the Israelis "not to drag us to what we do not like and to drag the Israelis to what they do not like. What happened in Nablus is an extremely grave matter and the situation is extremely dangerous." Abbas urged the Israeli government "to cease such actions, to stop rampage of settlers who assault the Palestinians, cut trees, beat people and then the army comes to protect them. This situation cannot be accepted nor endured." Israeli Prime Minister Benjamin Netanyahu flew to Washington at the weekend after meeting Mitchell. He will address the pro-Israel lobby group AIPAC on Monday, and an aide said he would meet President Barack Obama on Tuesday.