Admitting it was "no secret" the two men disagreed on how to counter Iran's nuclear program, both sought to end personal public rancor and focus on areas of cooperation, including a $30-billion-plus military deal.
Offering the combative Israel Prime Minister a lengthy Oval Office handshake, Obama hailed the "extraordinary bond" between the two countries and said Israel's security was a "top" foreign policy priority for his White House.
Netanyahu reciprocated by trying to bury suggestions -- fuelled by his own election campaign comments -- that he does not support the creation of a Palestinian state.
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For decades the prospect of a two state solution has been the bedrock of peace efforts.
Netanyahu had infuriated the White House by suggesting that a two state solution was dead.
US officials feared such comments would only fuel Palestinians' sense of skepticism about the political process and perhaps provoke violence.
"I want to make it clear that we have not given up our hope for peace. We'll never give up our hope for peace," Netanyahu said.
"I remain committed to a vision of peace of two states for two people's, a demilitarized Palestinian state that recognizes the Jewish state."