Israel's security is critical, said Justice Minister Livni.

"We came here today from a troubled and changing region," she said. "We are hopeful, but we cannot be naive. We cannot afford it in our region."

The U.S. stands to gain if it can help increase stability in the Middle East, says Lucy Kurtzer-Ellenbogen of the U.S. Institute of Peace in Washington.

"You look around at the region, which is in turmoil, and there is a lot of uncertainty," she said. "The Israeli-Palestinian conflict is one area ironically - because people have always seen it as the ultimate intractable conflict - but this is one area where the U.S. still does have influence with both of the parties."

Obama traveled to Israel in March, a trip that is credited with helping to renew direct talks between the Israelis and Palestinians.