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U.S. President Barack Obama, delivering a keynote speech to Israeli students, said on Thursday that continued settlement activity was "counterproductive" to peace and urged Israelis to accept the Palestinians' right to self-determination.

Obama, coupling his push for a more conciliatory Israeli approach to the Palestinians with a reaffirmation of his commitment to Israel's security, also promised that Washington will "do what we must to prevent a nuclear-armed Iran".

Speaking after a visit to the occupied West Bank for talks with Palestinian leaders, Obama also insisted that "Palestinians must recognize that Israel will be a Jewish state, and that Israelis have the right to insist upon their security".

But he warned Israelis: "Given the demographics west of the Jordan River, the only way for Israel to endure and thrive as a Jewish and democratic state is through the realization of an independent and viable Palestine."

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