Obama: Two-state solution still viable

US president Barack Obama insisted a two-state solution was still viable, but disappointed his Palestinian hosts by failing to take a clear stance on freezing settlement activity.

On the second day of a historic visit to Israel and the Palestinian territories, Obama travelled to the West Bank’s political capital to face an audience disappointed by his failure to meet expectations that he could help deliver them a state.

There he held a long meeting with Palestinian president Mahmoud Abbas who told him there would be no return to negotiations while Israel continues to build on land the Palestinians want for a future state.