Kerry at Saban Forum
Kerry at Saban ForumRalph Alswang

Outgoing US Secretary State John Kerry expressed disappointment Sunday that his efforts over the past four years have not put an end to the construction of homes in Jewish communities in Judea and Samaria.

Speaking at the Saban Forum, Kerry said that Israel is "heading to a place of danger" and that the chances for peace are eroding "by virtue of this continued settlement process."

"I don't agree with him that settlements are not an obstacle to peace," Kerry said. "Let's not kid ourselves here– you can't just wipe it away by saying it doesn't have an impact. It has an impact."

"I'm not here to say that settlements are the reason for the conflict. No, they're not," he added. "But I also cannot accept the notion that they're not a barrier to peace."

Kerry expressed concern for Israel's future if a two-state solution is not achieved. "There is no status quo. It is getting worse. It is moving in the wrong direction. It defies the imagination that you're going to have a Jewish state with a unitary state."

"Israel must decide if it is going to expand settlements or adopt the two state solution." he declared.