(VOVworld) - US President Barack Obama said on Thursday he continues to believe that a two-state solution for Israel and the Palestinians is "absolutely vital" for achieving Middle East peace. Obama said he believes the two-state option was also the best for the long-term security of Israel as a democratic and Jewish state. He spoke at a press conference at Camp David, where he is meeting Gulf leaders for talks on the impending Iranian deal. Obama said this optimal solution will not only bring peace to both nations but also help reduce conflict in the region. Obama’s statement came shortly after Israeli Prime Minister Binyamin Netanyahu formed a new conservative coalition government, which the world sees as likely to further strain ties with the Palestinians.