The US Secretary of State has urged Israeli Prime Minister Benjamin Netanyahu to create a Palestinian state and resolve disputes with Palestinians.

Speaking at a dinner attended by the ambassadors of Israel and several Arab states on Thursday, Hillary Clinton called on Netanyahu to prove his commitment to a Palestinian state and urged Israel to "refrain from unilateral statements and actions" that could undermine peace.

"Prime Minister Netanyahu has embraced the vision of the two-state solution," Clinton said.

"But easing up on access and movement in the West Bank, in response to credible Palestinian security performance, is not sufficient to prove to the Palestinians that this embrace is sincere," she said.

"We encourage Israel to continue building momentum toward a comprehensive peace by demonstrating respect for the legitimate aspirations of the Palestinians, stopping settlement activity and addressing the humanitarian needs in Gaza."

Clinton urged "bold leadership" from all sides to end the Israeli-Palestinian conflict and also pressed Arab states to show they wanted to make peace.

Israel has defied international and US calls for freezing the construction of settlements in the occupied territories and creating a Palestinian state.

(Press TV)