During a major speech on Middle East policy today, President Obama used the opportunity to directly address the Israeli-Palestinian conflict, and called for the creation of a Palestinian state along the borders which existed before the 1967 Six Day War. As the NY Times notes, it's the first time an American president has explicitly taken that position.

"We believe the borders of Israel and Palestine should be based on the 1967 lines with mutually agreed swaps, so that secure and recognized borders are established for both states. The Palestinian people must have the right to govern themselves, and reach their full potential, in a sovereign and contiguous state," he said. At the United Nations General Assembly last year, Obama said that true security for the Jewish state requires an independent Palestine, one that allows the Palestinian people to live with dignity and opportunity.

Obama also sounded frustrated with both sides for the seemingly endless amount of failed peace talks between the two nations. He admitted there was much left to be negotiated about, particularly regarding refugees, but he framed the speech in the context of the great political upheaval which has swept through the area in recent months: “At a time when the people of the Middle East and North Africa are casting off the burdens of the past, the drive for a lasting peace that ends the conflict and resolves all claims is more urgent that ever,” he said.

Shortly after Obama's speech (full remarks), Israeli Prime Minister Benjamin Netanyahu, who is coming to the White House for a meeting tomorrow, responded to the President's speech, calling the 1967 proposal "indefensible," and said he “expects to hear a reaffirmation from President Obama of American commitments made to Israel in 2004 which were overwhelmingly supported by both houses of Congress.” Obama's compromise would force Israel to give up land which it won in the Six Day War.

During his speech, Obama made sure to criticize the Palestinian side as well: he said that any "efforts to delegitimize Israel will end in failure," chided Hamas for its "path of terror and rejection," and reiterated America's close ties to Israel:

As for Israel, our friendship is rooted deeply in a shared history and shared values. Our commitment to Israel's security is unshakeable. And we will stand against attempts to single it out for criticism in international forums. But precisely because of our friendship, it is important that we tell the truth: the status quo is unsustainable, and Israel too must act boldly to advance a lasting peace.