U.S. Secretary of State John Kerry said Friday that he remained "hopeful" that Israel and the Palestinians could achieve a deal in the short term, Israel's Ha' aretz daily reported.
Kerry arrived at Jerusalem on Thursday for another round of his intensive shuttle diplomacy. "I am a believer in the possibility. We could achieve something, but it will be very, very difficult," he told a delegation of students from the American Jewish Committee, a Jewish advocacy organization, in Jerusalem.
"Both leaders recognize the consequences of failure," Kerry added.
Earlier on Friday, Kerry met for three hours with Israeli Prime Minister Benjamin Netanyahu. It was their second meeting in current visit. Israel's chief negotiator and Justice Minister Tzipi Livni and Defense Minister Moshe Ya'alon also attended the meeting.