It seems that Netanyahu just wanted to utter the words peace and two-state as a decoy to grab headlines and avoid the undesirable appearance that Israel is belligerent in the face of US demands to move forward. His conditions include but are not limited to: no right of return for Palestinian refugees forcibly uprooted from their ancestral homes, no compromise over Jerusalem including Arab-majority East Jerusalem, no dismantling or freezing of Israeli illegal settlements in the Occupied West Bank, no sovereign control for the new Palestinian state over its own borders and ports, no Palestinian right of defense (he uses the fancy buzz word, “demilitarized”), and no democratically elected party that Israel does not approve.