Yesterday Israeli Prime Minister Benjamin Netanyahu endorsed the goal of a Palestinian state, but with several conditions. He insisted that a Palestinian state must be demilitarized, that it give up claims on Jerusalem as a future capital, and that it recognize Israel as nation-state of the Jewish people. President Obama welcomed Netanyahu's first acknowledgment of the possibility a Palestinian state, calling it “an important step forward” in the peace process. However, many Palestinian officials are critical of the strict limits that Netanyahu called for. Larry Mantle discusses what this means for progress toward a two-state solution.