WASHINGTON — Secretary of State John Kerry said Tuesday that Israel’s announcement of 700 new apartments for Jewish settlers in East Jerusalem precipitated the bitter impasse in peace negotiations last week between Israel and the Palestinians. While Mr. Kerry said both sides bore responsibility for “unhelpful” actions, he noted that the publication of tenders for housing units came four days after a deadline passed for Israel to release Palestinian prisoners and complicated Israel’s own deliberations over whether to extend the talks. “Poof, that was sort of the moment,” Mr. Kerry said in testimony before the Senate Foreign Relations Committee. Still,...