US President Barack Obama has urged Israeli and Palestinian leaders not to let the opportunity for a peace deal slip away. Speaking ahead of the first direct talks between the two sides for nearly two years, he warned that "this moment of opportunity may not soon come again". Obama added: "Now is the time for leaders of courage and vision to deliver the peace that their people deserve."

Obama, who earlier condemned the "senseless slaughter" of four Israeli settlers, promised to put the "full weight" of the US behind the peace effort.

"If both sides do not commit to these talks in earnest, then the long-standing conflict will only continue to fester and consume another generation. This we simply cannot allow," he said.

"We know there will be moments that test our resolve. We know that extremists and enemies of peace will do everything in their power to destroy this effort."

Obama spoke at the White House on Wednesday evening after meetings with the Israeli PM Benjamin Netanyahu and the Palestinian leader Mahmoud Abbas.

Netanyahu described Abbas as his "partner in peace", and said he would not allow the latest attacks to "block our path to peace". But he said there was no change to the cabinet decision to end the partial freeze on new settlements in the West Bank on 26 September.

"It is impossible to take the issue of settlements in the West Bank, which is an issue for the permanent agreement, and deal with it separately at the beginning of the direct talks," Mr Netanyahu said in a statement.

But Palestinian spokesman Nabil Abu Rudeina warned that "the settlements must be halted and continuing them will signal the end of the peace process".