RAMALLAH, June 4 (Xinhua) -- The Palestinian National Authority(PNA) on Thursday said U.S. President Barack Obama's speech was the first and basic step to establish a just peace in the region.

Highlights of Obama's speech at Cairo University:

Obama highlights religious freedom Obama hopes "new beginning" with Muslims Obama: U.S. supports two-state solution Obama says U.S. ready to engage Iran without preconditions Obama says it's time to stop Israeli settlements Obama says Palestinian situation is intolerable Obama: U.S. supports a Palestinian statehood Obama: U.S. bond with Israel is "unbreakable" Obama: U.S. will fight extremism in all forms

    Obama's remarks about the Palestinian people's suffering and his emphasis that they should have a statehood "was the first basic and key to build a comprehensive and just peace in the region," said Nabil Abu Rdineh, spokesman for the Palestinian presidency.

    In a speech to the Islamic world from Cairo, Obama urged Israel and the Palestinians to work together to be bale to live side by side.

    "Israel has to take Obama's comments seriously," Abu Rdineh told Xinhua over the phone. Obama's message was clear: "Israel has to select peace or tension," Abu Rdineh went on.

    The spokesman reiterated that Obama's remarks were "encouraging," adding that the PNA would remain committed to the peace process.

    Since November 2007, Israel and the Palestinians resumed talks seeking a Palestinian statehood next to the Jewish one following the U.S.-hosted Annapolis peace conference. However, the talks failed to make any progress and officially stopped after right-wing premier Benjamin Netanyahu took office in April 2009.

    Netanyahu rejected Obama's calls on Israel to halt Jewish settlement in the Palestinian territories and said Israel can not stop the natural growth of the settlements.