Rice accuses Iran of spreading extremism

Speaking to American Jewish leaders at a conference in Nashville, Tennessee, Rice reassured them of Washington's commitment to protect longtime ally Israel against threats from Tehran and said successful Palestinian statehood negotiations could counter Iran's power in the region.

"We will defend against any action, as we always have, that would compromise Israel's security," Rice said to applause from delegates at the meeting of the United Jewish Communities.

The United States is hosting a peace conference in Annapolis, Maryland, probably this month, that Rice hopes will kick-start serious talks between Israelis and Palestinians on core issues - the right of return of refugees, the future of Jerusalem and the contours of a future Palestinian state.

Rice said a strong Palestinian state, where Israel's security was assured, would counter a rise of extremism across the region that was being spurred on by Iran's actions.

"A responsible Palestinian state can be a bulwark against that threat (of extremism)," said Rice. "This makes the two-state solution more urgent than ever," she added.

The United States is seeking support from skeptical Arab states such as Saudi Arabia at the Annapolis conference and Rice said "responsible" Arab nations must demonstrate they believed Israel had a permanent home in the Middle East.

"The time has come to seize that opportunity and that is why we intend to hold a serious and substantive meeting in Annapolis," Rice said, without providing details.

Rice, who returned from the region last week, urged both sides to make painful sacrifices and difficult choices they needed for peace, saying the future of the entire Middle East was at stake.

Both sides are seeking to draft a joint document ahead of the meeting but have so far been unable to bridge their differences and agree on a text, which diplomats say will likely be short on specifics.