Israel Cannot Return to 1967 Lines

"No one should set premature parameters about borders, about building or about anything else," Reid said.The reference to building alluded to earlier U.S. demands that Israel renew an expired moratorium on settlement construction in lands claimed by the Palestinians for their future state.

Peacemaking with the Palestinians stalled in late 2008, shortly before Obama and Netanyahu took office. Obama had hoped to bring the two sides back to the negotiating table and wrest a deal by September 2011.

But those efforts foundered after Israel refused to extend a settlement construction slowdown and Palestinians abandoned negotiations after three short weeks, saying continued Israeli building on land they want for a future state did not show good faith.

Now, the Palestinians are refocusing their strategy on trying to obtain a unilateral declaration of statehood at the U.N. when the General Assembly meets this coming September. Israel would like to derail that campaign, which, if successful as expected, could compound its diplomatic isolation.

The U.S. also opposes unilateral action, which would put Washington in the awkward position of having to vote against Palestinian statehood at a time when calls for greater democracy are ringing out across the Arab world.

Further complicating peace efforts is a unity deal between rival Palestinian factions that would coopt the vehemently anti-Israel Hamas militants into the Palestinian government.

Obama has said Israel should not be expected to negotiate with a government that does not recognize its right to exist.Anti-Israel hecklers interrupted Netanyahu's speech several times, but supporters drowned them out, leaping to their feet, giving him a standing ovation and at one point chanting his nickname, "Bibi, Bibi" and pumping their arms in the air.