"We will continue to work with Israel to support a two-state solution to the decades-old conflict, one that ensures that the Israelis will live alongside their neighbours in peace and with security," Obama said in an Independence Day message to the people of Israel.
"I send my warmest wishes to the Israeli people as they celebrate their independence. Generations of Jews dreamed of the day when the Jewish people would have their own state in their historic homeland, and 66 years ago today, that dream came true," he said.
Obama said the US was the first nation to recognise the government of Israel in 1948, and today, the US is still the first to come to the country's defence.
"The enduring relationship between our two nations, based on shared democratic values and our unwavering commitment to Israel's security, has never been stronger," Obama said.