Kerry 'confident' of Israel-Palestinian talks progress Published duration 6 November 2013

media caption US Secretary of State John Kerry says achieving peace in the Middle East is not "Mission Impossible"

US Secretary of State John Kerry says he remains optimistic that tensions and difficulties can be overcome in the Middle East peace process.

Any negotiations have "moments of up and moments of down", he said after holding separate talks with the Israeli and Palestinian leaderships.

Mr Kerry reaffirmed Washington's rejection of Israeli settlement activity as "illegitimate".

The direct talks launched in July have shown little sign of progress.

Mr Kerry said: "We need the space to negotiate privately, secretly, quietly and we will continue to do that.

"We have six months ahead of us on the timetable we have set for ourselves and I amIsraeli prime minister that, despite such reports, he was confident a deal could be reached.

Mr Kerry is pursuing an agreement based on a "two-state solution" that envisages Israel and a Palestinian state - consisting of the West Bank and the Gaza Strip - existing alongside each other.

He has previously said that all "final-status" issues - Jerusalem, borders, security arrangements, Jewish settlements and Palestinian refugees - are on the table.

The negotiating sessions have been held in secret locations and at undisclosed times as part of a US-requested media blackout. But both sides have voiced frustration at a lack of progress on core issues.

image caption Palestinians want Mr Kerry to halt settlement construction, not condemn it

The secretary of state has denied media speculation that he may propose a new interim