U.S. Secretary of State Hillary Clinton on Wednesday dismissed doubts over the success of Middle East peace talks, saying skeptics were "wrong" and that negotiations had gained momentum with backing from Arab states willing to accept a two-state solution.

"There's a certain momentum," she said. "You know, we have some challenges in the early going that we have to get over, but I think that we have a real shot here."

But Clinton also warned the direct talks launched between the Israelis and Palestinians could be the last chance to secure a peace settlement in the long-running conflict.

"Both sides and both leaders recognize that there may not ever be another chance," Clinton said at the Council on Foreign Relations in Washington.

Clinton hosted Netanyahu and Abbas at the State Department last week for the first direct negotiations between the two sides in nearly two years. She plans to attend a second round of talks on September 14 and 15 in Egypt.