There'd be a very limited time for that kind of approach?

Obama interviewed by Jerusalem Post Editor-in-Chief David Horovitz.
Photo: Ariel Jerozolimski

Time is of the essence in this situation.

You told AIPAC that the Israeli strike on Syria last year was "entirely justified to end that threat." Would you support an Israeli strike at Iranian facilities in the coming months if Israel felt it had no choice but to act?

My goal is to avoid being confronted with that hypothetical. I've said in the past and I will repeat that Israelis, and Israelis alone have to make decisions about their own security. But the grave consequences of either doing nothing or initiating a potential war with Iran are such that we want to do everything we can, to exhaust every avenue to avoid that option.

You've said on this trip that you want to work for an Israeli-Palestinian accommodation from the minute you're sworn in, so let me ask you about the thesis that there is no prospect of Palestinian moderation prevailing and enabling a peace process to really move forward until Iran's nuclear drive has been thwarted - that so long as the Teheran-backed extremists of Hamas and so on feel that they are in the ascendant, the moderates can't prevail and that the whole region is now in this kind of holding mode.

I think there is no doubt that there is a connection between Iran's strengthening over the last couple of years, partly because some strategic errors have been made on the part of the West. And [the same goes for] the increasing boldness of Hizbullah and Hamas. But I don't think that's the only factor and criterion in the lack of progress.

Hamas's victory in the [Palestinian Authority] election can partly be traced to a sense of frustration among the Palestinian people over how Fatah, over a relatively lengthy period of time, had failed to deliver basic services. I get a strong impression that [PA President Mahmoud] Abbas and [Prime Minister Salaam] Fayad are doing everything they can to address some of those systemic failures by the Palestinian Authority. The failures of Hamas in Gaza to deliver an improved quality of life for their people give pause to the Palestinians to think that pursuing that approach automatically assures greater benefits.

You know, look, I arrive at this with no illusions as to the difficulty in terms of what is required. But I think it's important for us to keep working at it, frankly, because Israel's security and peace in the region depend on it.

There's been some back and forth on your position on Jerusalem. So as editor of The Jerusalem Post, I need to ask you: Do you support Israel's current claim to sovereignty throughout the city, or should Jerusalem also come to constitute the capital of a Palestinian state?

I believe that Jerusalem is the capital of Israel. But I think that how Israel and the Palestinians resolve this issue is a final-status issue. It needs to be left up to the two parties.

Tell me about Syria: Israel is now in indirect talks with Syria. Would you as president directly re-engage with Damascus even if it hadn't changed its position on hosting terror groups and so on?

My general view is that initiating direct contacts between the United States and other countries is a generally smart practice - if nothing else just to get better intelligence on what they are thinking, on what their approaches are, what their calculations are, what their interests are. I think that based on conversations I've had here in Israel as well as conversations with leaders elsewhere in the region, there is the possibility at least that the Syrian government genuinely seeks to break out of the isolation. What price they are willing to pay to break out of that isolation, is an unanswered question. It's worth exploring.

And if in fact there are some genuine signals that Syria is willing to drive out terrorists in their midst, shut down the arms flow into Lebanon, or to otherwise engage in more responsible behavior, I think it could be a shift in the region that would be extremely advantageous. And the United States should partner with Israel as well as moderate forces in the Palestinian community to pursue that.

The American position has been blanketly opposed to settlement construction. Do you think Israel has a right to try and maintain a presence in the West Bank - for security, religious, historic or other reasons?

I think that Israel should abide by previous agreements and commitments that have been made, and aggressive settlement construction would seem to violate the spirit at least, if not the letter, of agreements that have been made previously.

Israel's security concerns, I think, have to be taken into account, via negotiation. I think the parties in previous discussions have stated that settlement construction doesn't necessarily contribute to that enhanced security. I think there are those who would argue that the more settlements there are, the more Israel has to invest in protecting those settlements and the more tensions arise that may undermine Israel's long-term security.

Ultimately, though, these are part of the discussions that have to take place between the parties. But I think that, based on what's previously been said, for Israel to make sure that it is aligned with those previous statements is going to be helpful to the process.

The current Israeli prime minister told me in an interview a few months ago that the great advantage of the Bush administration on that issue was that they looked at Israel on the basis of "67-plus" - that their starting point was that maybe Israel can expect or deserve support for a slightly larger sovereign presence than the pre-1967 Israel. Do you think of Israel in its final-status incarnation on the basis of "67-plus"?

Look, I think that both sides on this equation are going to have to make some calculations. Israel may seek "67-plus" and justify it in terms of the buffer that they need for security purposes. They've got to consider whether getting that buffer is worth the antagonism of the other party.