Panetta warns Israel becoming isolated

U.S. Defense Secretary Leon Panetta called on Israel to negotiate with the Palestinians and restore ties with Egypt and Turkey, and warned it was becoming increasingly isolated in the Middle East. Panetta made the comments to reporters traveling on his plane as he headed for Israel Sunday night. On Monday he met with Israel's Defense Minister Ehud Barak, where he criticized Congress's decision to freeze funds to the Palestinians in response to its refusal to engage in direct talks with Israel and instead submit a request for statehood recognition. In a joint press conference with Barak, Panetta said now is not the time to suspend the transfer of funds adding both Israel and the Palestinians gain from the aid transfer. Panetta is also scheduled to meet with Prime Minister Binyamin Netanyahu and later with Palestinian Authority President Mahmoud Abbas.