In Algeria for strategic security talks after traveling to the Mideast twice in the past 10 days to rescue the peace process, Kerry called it a "critical moment" for the peace process and vowed to continue his efforts "no matter what."
But he added there are limits to what the Obama administration can do to push the parties together and said it would be a "tragedy" if the talks failed.
"You can facilitate, you can push, you can nudge, but the parties themselves have to make fundamental decisions and compromises," he said. "The leaders have to lead and they have to be able to see a moment when it's there."
He recalled the old adage that you can lead a horse to water but can't make it drink.
Also Read
"Now is the time to drink," Kerry said. "The leaders need to know that."
At a news conference with Algeria's foreign minister, Kerry told reporters he planned to talk with both leaders this later today. He said US mediators huddled with Israeli and Palestinian negotiators in Jerusalem overnight.
That late-night meeting, which lasted until 4 am, had yielded some progress in resolving "some of the questions that have arisen as a result of the events of the last few days. But there is a still a gap and that gap will have to be closed and closed very soon," Kerry said.
He saw Netanyahu in Israel on Monday and Abbas last week in Jordan, but cancelled a third trip to the region yesterday after the Palestinians said they would seek greater United Nations recognition over Israeli objections. Abbas announced the move after Israel refused to release a group of Palestinian prisoners it had earlier agreed to free.
Both actions run counter to the agreement the two sides reached last year to negotiate a settlement by the end of April.