US Defense Secretary Leon Panetta said Monday that the United States is committed to a two state solution, PLO official Saeb Erekat told Ma'an. "Panetta confirmed to (President Mahmoud) Abbas that US president Barack Obama remained committed to the two-state solution and would dedicate efforts to protect that solution as the creation of a Palestinian state is a joint interest for the US, Israel as well as the Palestinians," Erekat told Ma’an on Monday. The US defense chief met with Abbas on Monday in Ramallah, urging "bold action" from Israeli and Palestinian leaders. He said the US administration was exerting huge efforts to overturn a decision by the US Congress to block aid to the Palestinian Authority. Disagreements between the US and the Palestinians are deep, but never mean abandonment, Erekat quoted Panetta as saying in the meeting with Abbas. Abbas said that the Palestinians could only accept the Quartet's proposal if all settlement activity was halted, East Jerusalem was recognized as the Palestinian capital and 1967 borders were the basis for talks. The last round of peace talks collapsed in 2010 over Israeli Prime Minister Benjamin Netanyahu's refusal to extend a partial freeze on illegal settlement building. US Defense Secretary Leon Panetta met with Israeli and Palestinian leaders on Monday before heading to Egypt and will attend a NATO session in Brussels this week. He said on Monday that Israel was becoming "increasingly isolated" in the Middle East.