Jerusalem--Benjamin Netanyahu weighed up options Thursday for a new Israeli rightwing coalition as Western governments cranked up the pressure on the premier for ruling out a Palestinian state during his campaign.
Both the European Union and the United States gave a cool reception to Netanyahu's upset victory in Tuesday's election.
They expressed concern that his lurch to the right during the hard-fought campaign could prove an insurmountable obstacle to any resumption of peace talks.
Palestinian president Mahmud Abbas said a two-state solution to the Middle East conflict would be impossible with a new government led by Netanyahu.
In a last-ditch appeal to Israel's far right just hours before polls opened, Netanyahu ruled out the establishment of a Palestinian state and pledged to build thousands of new homes for Jewish settlers in annexed Arab east Jerusalem.
While it may have secured him a third consecutive term, it has left him deeply isolated internationally and has done further damage to his already frosty relations with US President Barack Obama.
Washington brokered nine months of negotiations between Netanyahu's last government and the Palestinians that were predicated on a two-state solution, accusing the Israeli leader of helping bring about their collapse.
The White House said it continued to see a two-state solution as "the best way" to resolve the conflict and warned it was reviewing its policy on the diplomatic stalemate between Israel and the Palestinians.
"Based on Prime Minister Netanyahu's comments, the United States will reevaluate our position and the path forward in the situation," White House spokesman Josh Earnest said, without elaborating further.
The statement came as speculation swirled about whether the Obama administration might cease using the US veto at the UN Security Council to shield Israel from the Palestinians' efforts for statehood.
Speaking anonymously to the New York Times, several unnamed officials said the Obama administration might agree to a UN Security Council resolution enshrining a two-state solution in a move which would be anathema to Netanyahu.
"The premise of our position internationally has been to support direct negotiations between the Israelis and the Palestinians," a senior White House official said.
"We are now in a reality where the Israeli government no longer supports direct negotiations. Therefore we clearly have to factor that into our decisions going forward."
Natan Sachs, a fellow in Middle East policy at the Brookings Institution, told AFP it was likely Netanyahu would try and retreat from his remarks, although it "will not be an easy task."
"Netanyahu's comments don't help his credibility, as he seems to be contradicting his own policy from last year when he was negotiating a two-state solution," he said.
- 'Bold leadership required' -
The Palestinian leader said that it was clear from Netanyahu's campaign pledges that there was no prospect of a negotiated settlement with him as prime minister.
AFP