Nabil Shaath, a senior member of the Palestinian negotiating team, said Abbas and Netanyahu held "deep discussions" of "the core issues" between them. "But the heavy cloud of the settlement issue is still hovering there," he said, adding there was "no positive answer" from Netanyahu on continuing the moratorium.
"We assume a solution will be found before the 26th," Shaath said, referring to the expiration of Netanyahu's moratorium on new settlement construction. He added that the Palestinians would continue negotiations in the meantime.
Clinton opened the talks with a nod to the veterans of past Mideast peace attempts who gathered around a table. "We've been here before, and we know how difficult the road ahead will be," she said, underscoring the steep odds facing President Obama's foray into peacemaking.
Israelis and Palestinians disagree over title and control to Jerusalem, whether generations of Palestinian refugees should be permitted to return, security guarantees demanded by Israel, and much more.
Even if the politicians and diplomats could craft compromises on those issues, groups intent on killing any deal are waiting in the wings. They include Iranian leaders, Jewish settlers determined to expand their hold on the contested West Bank, and the Palestinian group Hamas, which controls the Gaza Strip and challenges Abbas' leadership.
"The fundamental problem isn't a problem of diplomacy," but one of "politics," said Jon Alterman, director of the Middle East program at the Center for Strategic and International Studies.
