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The two parties "are trying to analyze what this means for their future position," Clinton told PBS television.
But "I would hope and President (Barack) Obama has said that he will continue to press both sides, which is what we believe we have to do that everyone would realize that negotiations are the only way, but more than that, they are an immediate need."
Clinton stressed that "it is in the best interest of both the Israelis and the Palestinians, even in the midst of everything going on in the region, to try to turn to the hard work" of negotiating a settlement.