Seeking to broker a Mideast peace agreement that has eluded U.S. presidents for decades, President Barack Obama brought together Israeli and Palestinian leaders late on Wednesday for ceremonial handshakes at the White House on the eve of re-launching direct talks.

Two American troops died in fighting in Afghanistan on Thursday, while NATO and local officials said coalition and Afghan forces had killed at least 37 insurgents in a series of ground and air engagements.

Israel is ready to cede parts of Jerusalem to the Palestinians in the framework of a peace deal, Defense Minister Ehud Barak said on Wednesday ahead of the start of talks in Washington, as the Israeli settlers announced they would break a moratorium and resume construction in the West Bank.

President Barack Obama ended the U.S. combat mission in Iraq, declaring no victory after seven years of bloodshed, and telling Americans and the world: "It is time to turn the page."