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By Crispian Balmer JERUSALEM (Reuters) - Criticized for settling occupied land and stung by its failure to shape the new world power deal with Iran, Israel must rethink its strategy if it wants to avoid severe diplomatic setbacks in the coming months. Prime Minister Benjamin Netanyahu's fury about the Iranian nuclear accord has exposed Israel's limited reach on the international stage and has coincided with growing frustration abroad over its flailing peace talks with the Palestinians. Traditionally the closest of friends, Israel and the United States now stare at each other with barely concealed mistrust. Some of Netanyahu's allies suggest it is time for Israel to build up relations in other regions, such as Asia, to make sure that all its diplomatic eggs are not in one, American, basket.More...