Is the State of Israel 'playing with Fire'?

A report in the Guardian suggests that Israel is playing with fire over settlements.
Jordan: Israel playing with fire with settlements

Abdullah is said to firmly reject the settlement plans, saying Jordan has "warned repeatedly that Israel is playing with fire," and said that he "condemns all Israeli measures to change the identity of Jerusalem and empty it of its Arab Christian and Muslim residents."

The State of Israel and Settlements

The Telegraph is reporting that Israel is planning to defy 'to defy Barack Obama' over settlements: It reports that;
'Benjamin Netanyahu, the Israeli prime minister, will convene an emergency session of his cabinet on Friday amid signs that the Jewish state was strengthening its defiance of the United States.'