WASHINGTON - US President Barack Obama met with Israeli Prime Minister Benjamin Netanyahu at the White House on Monday, reaffirming United States' commitment to a two-state solution to the Israeli-Palestinian conflict. "I believe it is in the interest not only of the Palestinians but also the Israelis and the United States and the international community to achieve a two-state solution," Obama told reporters after his talks with Netanyahu, the hard-line Israeli leader. Obama also told Netanyahu that Israel must stop Jewish settlement in the occupied territories. "We have to make progress on settlements. Settlements have to be stopped," he said. In response, Netanyahu said that Israel is ready to reopen peace talks with the Palestinians. But he insisted that Palestinians must recognize the existence of Israel. "I want to make it clear that we don't want to govern the Palestinians -- we want to live in peace with them," Netanyahu said, noting that "the goal has to be an end to conflict. There'll have to be compromises by Israelis and Palestinians alike. We're ready to do our share. We hope the Palestinians will do their share as well." Netanyahu, who is leading a hawkish Israeli governing coalition, did not talk about the Palestinian state that Washington and the Palestinians have actively called for. On Iran, Obama urged Tehran to make commitment to the settlement of the nuclear issues. He said that the United States is expecting to see positive response from Iran on its nuclear programme by the end of the year. "My expectation would be that if we begin discussions soon, shortly after the Iranian elections, we should have a fairly good sense by the end of the year as to whether they are moving in the right direction," Obama said. In turn, Netanyahu highlighted Israel's grave concerns over Iran's nuclear programme. "Iran openly calls for our destruction, which is unacceptable," he said.