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In this Wednesday, Oct. 1, 2014 photo, President Barack Obama meets with Israeli Prime Minister Benjamin Netanyahu in the Oval Office of the White House in Washington.(AP)

President Barack Obama and Israeli Prime Minister Benjamin Netanyahu pressed each other politely but firmly Wednesday to address areas of tension in their relationship, with the U.S. president calling for an end to Palestinian civilian deaths and the Israeli leader warning of the consequences of leaving Iran with nuclear capabilities.

As Obama and Netanyahu opened their meeting in the Oval Office, Israeli officials announced plans to move forward with a controversial new housing development in east Jerusalem. Neither leader mentioned the project as they spoke to reporters before beginning their private discussions.

Wednesday's meeting marks the first time Obama and Netanyahu have met since Israel's summer war with Hamas, which killed more than 2,100 Palestinians -- the vast majority of them civilians -- and more than 70 Israelis.

The civilian deaths in Gaza deeply angered U.S. officials, prompting more biting public condemnations of Israel's actions than are typical from the Obama administration.

Sitting alongside Netanyahu Wednesday, Obama said leaders must "find ways to change the status quo so that both Israel citizens are safe in their own homes, and schoolchildren in their schools, from the possibility of rocket fire but also that we don't have the tragedy of Palestinian children being killed as well."

Much of Obama and Netanyahu's meeting was expected to focus on the U.S-led nuclear negotiations with Iran. The U.S. and its negotiating partners -- Britain, France, Germany, Russia and China -- have until Nov. 24 to reach a deal with Iran, though all sides say significant gaps remain.

Israel sees Iran's attempt to build a nuclear weapon as an existential threat, and Netanyahu reiterated his skepticism that the diplomatic process will be allow Tehran to keep aspects of its program intact.

"Iran seeks a deal that would lift the tough sanctions that you worked so hard to put in place and leave it as a threshold nuclear power," Netanyahu told Obama. "And I firmly hope under your leadership that would not happen."

Iran insists its nuclear program is for peaceful purposes.

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Obama, Netanyahu: Great challenges in Middle East

President Barack Obama and Israeli Prime Minister Benjamin Netanyahu met for talks overshadowed by unusually blunt U.S. criticism of the Jewish states latest settlement plans.

While the two leaders smiled at the start of their meeting in Washington today, tensions were evident hours later when the White House and State Department condemned Israels latest plans to expand Jewish housing in east Jerusalem. The proposed construction of 2,610 new homes in the Givat Hamatos area was disclosed by the activist group Peace Now earlier today.

This development will only draw condemnation from the international community, distance Israel from even its closest allies, poison the atmosphere not only with the Palestinians but also with the very Arab governments with which Prime Minister Netanyahu said he wanted to build relations, and call into question Israels commitment to a peaceful, negotiated settlement with Palestinians, State Department spokeswoman Jen Psaki said in a statement that was mirrored by White House press secretary Josh Earnest.

Israels construction of Jewish settlements in territories it has occupied since 1967 has been one of the main obstacles to peace talks, including the latest U.S.-brokered negotiations, which collapsed in April. Palestinians claim those lands for their future state.

Israeli Housing Ministry spokesman Ariel Rosenberg said earlier today that he couldnt immediately confirm the Peace Now report, which said tenders for the construction were published by the government on Sept. 24, indicating final approval.

Iran's Nuclear Plan

The Givat Hamatos area, which lies near the Palestinian city of Bethlehem on the West Bank, is part of the east Jerusalem territory captured by Israel from Jordan in the 1967 Middle East war and annexed in a move condemned by the United Nations as a violation of international law. Israel maintains the land is disputed territory whose status should be resolved in peace negotiations with the Palestinian Authority.

While the U.S. has objected to past settlement plans, such strong public condemnation is rare. The U.S. supports Israel with billions of dollars in military aid, and has regularly blocked measures at the UN condemning Israeli policy toward the Palestinians.

Earlier, at the start of their talks, Netanyahu sought to put the public focus on Irans nuclear program as international negotiators head toward a Nov. 22 deadline for an accord. The U.S. and Israel share the goal of preventing Iran from becoming a nuclear power, he said.

One of Netanyahus proclaimed goals for the talks was to urge the U.S. not to get distracted by other issues, including the battle with Islamic State in Iraq and Syria, and keep the focus on Iran and its nuclear program.

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Obama Sees Common Goals With Netanyahu Amid Crises

As President Barack Obama attempts to refocus attention on an improving economy with a speech tomorrow, hes got two problems.

He has to make a compelling enough argument to distract the publics focus from the latest, messy turn of events: Ebolas arrival in the U.S. and failings by the Secret Service that could cost his appointee and the first woman to lead the agency her job.

And he must find a way to translate positive national economic data into something that resonates personally with Americans.

One of the strengths for the White House, believe it or not, actually is the economy, said Tony Fratto, a former assistant Treasury secretary and spokesman for President George W. Bush. Whats problematic for him, Fratto said of Obama, is that most Americans dont believe it.

The economy is in its sixth year of expansion following the 18-month recession that ended June 2009, and the jobless rate is down to 6.1 percent from a 26-year high of 10 percent in October 2009.

Still, more than 7 million Americans work part time because they cant find full-time jobs, and wage growth barely outpaces inflation. And those, said Fratto, are the data-points dragging Obama down.

Even as job creation has increased and job growth has increased, wages have not, he said.

The presidents speech at the Northwestern University Kellogg School of Management comes as Democrats are fighting to hold control of the Senate in the November midterm elections. In a Sept. 28 interview with CBSs 60 Minutes, Obama said hes confident they can succeed -- if their message on jobs and growth can break through the clutter.

Eric Dezenhall, a crisis-management consultant, said Americans have such an evangelical belief in the power of P.R. that we actually think communications can overwhelm harsh realities, when in reality you cant change the subject when people dont want to. Obama is dealing with very tangible events that are far larger than rhetoric, so hes very limited in what his options are.

Some of Obamas problems are absolutely self-inflicted, and then you put it in an environment where some things are beyond your control and it looks pretty bad, Fratto said. To get ahead of his problems, Obama should make his remarks forward-looking.

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Obama Political Reset: Focus Elections on the Economy

Washington : Obama greets PM Modi : 2 Hours Discussion

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Kem Cho Mr PM! Obama welcomes Modi
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Kem Cho Mr PM! Obama welcomes Modi - Video