Palestinian president Mahmud Abbas said Wednesday he was ready to resume peace efforts with Israel if it stopped settlement building, reacting to a major speech by US Secretary of State John Kerry.

"The minute the Israeli government agrees to cease all settlement activities... and agrees to implement the signed agreements on the basis of mutual reciprocity, the Palestinian leadership stands ready to resume permanent status negotiations on the basis of international law and relevant international legality resolutions... under a specified timeframe," he said in a statement.