Israeli Prime Minister Benjamin Netanyahu speaks during a business conference in Tel Aviv. (Moti Milrod, Maan Images)

While reaffirming the "special relationship" between their two countries, U.S. President Barack Obama and Israeli Prime Minister Benjamin Netanyahu appeared unable to bridge major differences in their approaches to Iran and Israeli-Palestinian peace efforts following their White House meeting here Monday.

While Obama said he may be prepared to impose additional sanctions against Iran early next year if diplomatic efforts to persuade it to curb its nuclear programme fail to make progress, he refused to set what he called "an arbitrary deadline." Israeli officials had pressed Washington for an early October deadline.

And while Obama repeatedly stressed the importance of a two-state solution to the Israeli-Palestinian conflict, Netanyahu never uttered the phrase or alluded to the possibility of a Palestinian state during a 30-minute press appearance with the U.S. president after their meeting in the Oval Office.

"My view is less one of terminology than substance," he said, adding a number of pre-conditions for any final settlement.

"If... the Palestinians recognise Israel as the Jewish state, if they fight terror, they educate their children for peace and for a better future, then I think we can come to a substantive solution that allows the two peoples to live side by side in security and peace," he said, stressing that he was nonetheless eager "to resume negotiations (with the Palestinians) as rapidly as possible..."

Netanyahu also declined to respond to explicit calls by Obama to both stop Israeli settlement activity in the occupied territories and to address the humanitarian situation in Gaza, which has been subject to strict blockade by the Israeli authorities and Egypt that has prevented any reconstruction of the territory devastated by Israel's three-week military campaign in late December and January.

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"Israel is going to have to take some difficult steps as well. And I shared with the prime minister the fact that under the Road Map, under Annapolis, there is a clear understanding that we have to make progress on settlements; that settlements have to be stopped in order for us to move forward," Obama said during the press appearance.

"The fact is that if the people of Gaza have no hope, if they can't even get clean water at this point, if the border closures are so tight that it is impossible for reconstruction and humanitarian efforts to take place, then that is not going to be a recipe for Israel's long-term security or a constructive peace track to move forward," he noted, adding that Washington intends to become a "strong partner" in any peace process.

Monday's talks, which Obama called "extraordinarily productive", were perhaps the most widely anticipated of any he has held with a foreign leader since his inauguration nearly four months ago. Unlike George W. Bush, Obama has repeatedly insisted he will make a two-state solution a top priority of his foreign policy and that he sees such a settlement as critical to the larger goal of stabilising the Greater Middle East, including Afghanistan and Pakistan, and defeating al Qaeda and like-minded groups.

To read the full article please visit Inter Press Service.