Given how Obama has treated Israel, it would have come as no surprise if this had been intentional. In any case, the initial report was widely denied and dismissed as inaccurate; however, now Morton has confirmed that it was true, and says it was an error. An error that happens to coincide with the sitting president's consistent stance toward Israel, but apparently he can't be this open about it yet.
"U.S. says Israel’s inclusion on terrorist watch list was a mistake," by Ron Kampeas for the Jewish Telegraph Agency, July 6 (thanks to all who sent this in):
WASHINGTON (JTA) -- Israel was included erroneously on a U.S. Department of Homeland Security terrorist watch list, a U.S. official said.
John Morton, the director of the U.S. Immigration and Customs Enforcement division of the department, said Israel's recent appearance on a list compiled by the department's office of the inspector general was a mistake.
"The addition of Israel in the OIG’s list of ICE's 'Third-Agency Checks' (TAC) was based on inaccurate information provided to the OIG during the course of its audit," Morton said in a statement sent by e-mail to JTA. "The U.S. does not and never has considered Israel to have links to terrorism, but rather they are a partner in our efforts to combat global terrorism. The United States maintains close intelligence-sharing relationships with Israel in order to address security issues within its own borders and in our mutual pursuit of safety and security around the globe."...