Democracy Now! – President Obama: “I will say this, that I believe that peace in the Middle East is possible. I think it will be based on two states, side by side, a Palestinian state and a Jewish state.”

The Israeli newspaper Haaretz, meanwhile, reports the Obama administration has begun warning Democratic lawmakers of a looming confrontation with the new Israeli government on fulfilling its obligations. The White House has told Democrats to expect resistance from Prime Minister Benjamin Netanyahu on upholding the Israeli government’s pledge to freeze settlement activity and accepting the principle of a Palestinian state. Although Obama’s efforts would go further than the Bush administration’s, critics say they still fail to meet minimal Palestinian rights.