FACTBOX: Facts about Israel's settlements

JERUSALEM (Reuters) - U.S. President Barack Obama will meet Israeli Prime Minister Benjamin Netanyahu and Palestinian President Mahmoud Abbas in New York on Tuesday in an effort to narrow gaps and attempt to revive peace talks [nLL655684].

One of the crucial issues that has stalled the talks is Palestinian objection to Israel's settlement building in the occupied West Bank. A U.S. call for Israel to freeze building has so far failed to illicit a public response from Netanyahu causing a rare rift in relations with its main U.S. ally.

Following are facts about the settlements Israel has built in the territory it captured in a 1967 Middle East war.

* Some 300,000 Israelis live in more than 100 settlements Israel has built in the West Bank, and another 200,000 live in and around Arab East Jerusalem, areas home to some 2.5 million Palestinians seeking independent statehood. Israel has annexed East Jerusalem as part of its capital in a move not recognized internationally.

* Many settlers living in enclaves nearest to the cities of Tel Aviv and Jerusalem have cited cheaper housing costs as a motive. Others see themselves as pioneers exercising a biblical right of Jews to lands they call Judea and Samaria.

* Palestinian President Mahmoud Abbas demands a freeze in settlement construction before peace talks, stalled since December, may resume. Abbas cites a 2003 U.S. and European-backed peace "road map" that calls for a stop to settlement building alongside parallel steps by the Palestinians to curb violence against Israel.

* Benjamin Netanyahu, a right-wing prime minister who took office in March backed by a coalition of pro-settler parties who want Israel to keep much of the West Bank under any peace deal, says he would not build new settlements but wants to expand some existing enclaves to accommodate what he calls "natural growth" of the population.

* The World Court deems settlements as illegal under international law, including the Geneva Conventions, a ruling Israel disputes. The United States and European Union have commonly viewed the settlements as obstacles to peace and urged their cessation.

* Netanyahu insists the settlements are not the "heart" of the conflict, and wants Palestinians to recognize Israel's right to exist as a Jewish state before they may achieve statehood. Palestinians reject this demand saying they have already recognized Israel and should not have to define its ethnicity.

(Writing by Allyn Fisher-Ilan, Editing by Samia Nakhoul)