US Secretary of State John Kerry is set for talks on Thursday with the Palestinian leader on easing regional tensions, after Israel approved new settler homes in east Jerusalem despite mounting unrest.The new settlement construction was announced on Wednesday just hours after suspected Jewish extremists torched a West Bank mosque, in another development likely to inflame tempers in an already heated atmosphere.Months of unrest have escalated in recent days, spreading from annexed east Jerusalem to the West Bank and Arab communities across Israel, raising fears of a new Palestinian uprising. Kerry was due to hold talks with Palestinian president Mahmud Abbas in Amman on Thursday, after arriving in Jordan Wednesday to discuss the situation.