U.S. Secretary of State Kerry meets with Israel's President Peres in JerusalemBy means of Lesley Wroughton AMMAN (Reuters) – U.S. Secretary of State John Kerry warned Israel on Thursday that it could face a third Palestinian rebellion and deepening world isolation if American-brokered peace negotiations failed. Each Israelis and Palestinians have given grim assessments of the shortage of progress in their talks, which the United States helped revive ultimate July after a 3-yr hiatus. Violence has simmered and on Thursday, Israeli troops killed a Palestinian wielding a makeshift firearm in the occupied West Bank. Kerry, conversing in Jordan a day after a consult with to Israel, where he appealed for limits on its settlement building in the West Bank, stated the negotiations had made "important development" in some areas.