Hillary Clinton has called for the Palestinians to publicly disavow terrorist organisations Hamas and Hizbollah.
The US Secretary of State told a Palestinian peace group that Israel must take further steps to relax restrictions on the Gaza Strip.
Mrs Clinton also told the audience at the American Task Force on Palestine event that while there is “no magic formula” to solve the Middle East conflict, negotiation remains absolutely necessary.
Direct peace talks resumed in Washington in September after nearly two years.
Mrs Clinton said that officials “are working every day to create the conditions for negotiations to continue and succeed.”
She said: “It is always easier to defer decisions than it is to make them.
“I know there are those who think that if they wait, scheme or fight long enough, they can avoid compromising or negotiating.
“That is not the case. That will only guarantee more suffering, more sorrow, and more victims.”