When asked by Haaretz what would happen if the direct peace talks, officially launched in Washington on Sept. 2, were to break down at an early stage, Obama said that we are going to keep on trying.

[Palestinian President Mahmoud] Abbas and Prime Minister [Benjamin] Netanyahu were here last week, and they came with a sense of purpose and seriousness and cordiality that, frankly, exceeded a lot of people's expectations. What they said was that they were serious about negotiations. They affirmed the goal of creating two states living side by side in peace and security, the U.S. president said.

Obama said the United States will stay engaged in the negotiations, including a visit to the region by U.S. Secretary of State Hillary Clinton next week.

Referring to a temporary Israeli moratorium on construction in West Bank settlements, set to expire at the end of the month, Obama said that I told Netanyahu – given that the talks are moving in a constructive way, it makes sense to extend the moratorium.