Israel police have dropped the charge of racist motivations after an Israeli settler was arrested following rioting near a Palestinian village
Washington, whose traditionally close ties with Israel have become strained, has described the incident as a "terror attack by Israeli extremist settlers."
Israeli police have made six failed court appeals to extend custody of settler suspect, now some are calling it a distraction.
Yered was released to house arrest on Wednesday night, but only after police had appealed such an order five separate times in three courts.
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