US Secretary of State John Kerry believes the effort to bring peace to Israel and the Palestinians is now in a holding pattern and the two sides need to decide what to do next, the US State Department said on Friday."His view is this is a moment of transition and part of the process. We are in a holding period where parties need to figure out what is next," State Department spokeswoman Jen Psaki told reporters. "We have always thought there could be a point where we needed to pause and both sides needed to look at what was possible. And we're clearly at that point now."