Israel’s Interior Ministry gave final approval Tuesday for 1,100 new homes to be built in Gilo, a sprawling settlement in southeast Jerusalem that Palestinians claim as their future capital. Construction can begin after a 60-day period reserved for public comment. The move is certain to heighten tensions in the city, where relations are already strained amid Palestinian President Mahmoud Abbas's proposal of a Palestinian state at the U.N. last week. Israel seized East Jerusalem in the Six-Day War of 1967, when it also took the control of Palestinian territories in the Gaza Strip and the West Bank. Secretary of State Hillary Clinton has called on Israel to freeze settlement construction before the two sides can continue peace talks.