US Secretary of State John Kerry, who has invested more than a year of intensive shuttle diplomacy, said there were "limits" to the time Washington could devote to the process.
"This is not open-ended," Kerry said in Morocco, adding that it was "reality check" time and he would evaluate with President Barack Obama Washington's next move.
"There are limits to the amount of time and effort that the United States can spend if the parties themselves are unwilling to take constructive steps."
But Palestinian president Mahmud Abbas rejected his appeals to withdraw the applications he signed on Tuesday to adhere to 15 international treaties, a Palestinian official told AFP.
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And Israeli Prime Minister Benjamin Netanyahu ignored appeals to refrain from "unhelpful" tit-for-tat moves and asked officials to draw up a range of tough reprisals, Israeli media reported.
Kerry said Washington currently had an "enormous amount on the plate", highlighting negotiations with the Russians over Ukraine, talks with Iran on its nuclear programme and the Syrian conflict, as other US priorities.
A State Department spokeswoman attempted to take the sting out of Kerry's remarks, insisting there was still a peace process to which the US remained "committed".
"We're still negotiating," Marie Harf said.
"Until we get to the end of this process, we should all be cautious about making predictions about what will come next," she added.
Israel says Tuesday's move by Abbas is a clear breach promises made by the Palestinians when peace talks were relaunched in July to pursue no other avenues for recognition of their promised state.