U.S. President Barack Obama said on Monday that Israeli Prime Minister Benjamin Netanyahu's speech about the settlement of Israeli-Palestinian conflict shows the "possibility we can restart serious talks."

Speaking to reporters after talks with Italian Premier Silvio Berlusconi at the White House, Obama said that "I think it is important not to immediately assess the situation based on commentary the day after a speech."

However, Obama noted that "overall, I thought that there was positive movement in the Prime Minister's speech. He acknowledged the need for two states ... What we are seeing is at least the possibility that we can restart serious talks."

In his foreign policy speech on Sunday, Netanyahu presented three conditions for the establishment of a Palestinian state alongside Israel. The three conditions are the recognition of Israel as a Jewish state, demilitarization of future Palestinian state and the support of the international community.

"If we receive this guarantee we will be ready to accept a demilitarized Palestinian state alongside the Jewish one," Netanyahu said.

While stressing that "Jerusalem would remain the unified capital of Israel," Netanyahu called on the leadership of the Palestinian Authority: "Let us begin peace negotiations immediately, without preconditions."

Peace would consist of "two free peoples" living as "good neighbors with mutual respect, each with its own flag and national anthem," the Israeli prime minister said.

Source: Xinhua