John Kerry warns Israel it is running out of time to make peace with Palestinians "No illusions": US Secretary of State John Kerry walks alongside US ambassador to Israel Dan Shapiro as he arrives in Israel for a private meeting with Prime Minister Benjamin Netanyahu on Friday. US Secretary of State John Kerry has warned Israel that failure to reach agreement in this round of peace talks could lead to a new Palestinian uprising. Does Israel want a third intifada? Mr Kerry said on Thursday during a joint television interview with Palestinian and Israeli reporters. "The alternative to getting back to the talks is the potential of chaos," he said. The first Palestinian intifada, or uprising, against Israeli occupation ran from 1987 to 1993, and was followed by a second one from late 2000 to 2005 in which human rights groups estimated 3000 Palestinian and 1000 Israeli civilians and troops died. Mr Kerry was interviewed in Jerusalem as he shuttled between meetings with Israeli Prime Minister Benjamin Netanyahu and Palestinian Authority President Mahmoud Abbas in search of a peace deal. The top US diplomat brought the two sides together in late July for their first formal negotiations in three years, setting a nine-month deadline for the talks. During the interview, he sparred repeatedly with Udi Segal of Israel's Channel 2, who sat next to the Palestinian Broadcasting Corporation's Maher Shalabi. Referring to Mr Netanyahu's release of Palestinian prisoners, Segal asked: "How do you think a picture of Mahmoud Abbas ... hugging murderers that killed children 20 or 30 years ago and say[ing] that they're heroes of the Palestinian people - what kind of message do you think this is send[ing] about [the] peace process?" "It's very difficult," Mr Kerry said. I have no illusions. But Mr Netanyahu risked looking as though he was not committed to a peace agreement because of continued settlement construction in the occupied West Bank. If you say you're working for peace and you want peace and a Palestine that is a whole Palestine that belongs to the people who live there, how can you say we're planning to build in the place that will eventually be Palestine? Mr Kerry said. Mr Netanyahu's spokesman Mark Regev said the Prime Minister did not wish to comment on the remarks. Mr Kerry cautioned Israelis against growing complacent. "If we do not find a way to find peace, there will be an increasing isolation of Israel," he said. "Israel says, 'Oh, we feel safe today, we have a wall, we're not in a day-to-day conflict, we're doing pretty well economically,"' Mr Kerry said. Well, I've got news for you. Today's status quo will not be tomorrow's or next year's. "If we don't resolve the question of settlements and the question of who lives where and how and what rights they have; if we don't end the presence of Israeli soldiers perpetually within the West Bank, then there will be an increasing feeling that if we cannot get peace with a leadership that is committed to nonviolence, you may wind up with leadership that is committed to violence," he said. Bloomberg, Washington Post