***UPDATE*** 11:15am From AP:

Democratic presidential candidate Barack Obama said Wednesday it is in Israel's interest to achieve a lasting peace with the Palestinians, but he emphasized Israeli's right to defend itself.

He also said that Jerusalem will be the capital of Israel, but that the issue should be settled through negotiation.

"That's an issue that has to be dealt with the parties involved, the Palestinians and the Israelis, and it is not the job...