A clearly distressed Kerry, who has spent the better part of his 14-month tenure as America's top diplomat trying to cajole the parties into talks, said it is "reality check time" for the peace process.
Speaking to reporters in Rabat before traveling to Casablanca for a meeting with the king of Morocco, Kerry said, "We are going to evaluate very carefully exactly where this is and where it might possibly be able to go."
He said it is "regrettable" that in the last few days both sides "have taken steps that are not helpful and that's evident to everybody."
Kerry has been the lead player in a months-long effort by the Obama administration to resuscitate Mideast peace talks, with heightened urgency as an end-of-April deadline approached for setting a framework for productive talks.
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Even as the secretary made another visit to the region, Palestinian President Mahmoud Abbas moved, against Israel's wishes and the expectations of the US, to seek accessions to 15 international conventions through the United Nations.
The US has supported statehood for the Palestinians but has argued that they should accomplish this through the peace process rather than by unilateral actions.