Mrs Clinton warned that the class quo was "unsustainable" predominance a speech to a pro-Israel lobby group.
Her comments come amid a dispute between the US again Israel since plans in that 1,600 new homes in East Jerusalem.
On Sunday, Israeli Prime Minister Benjamin Netanyahu ruled over hobbling reconciliation construction in the city.
The Palestinian Authority is mad at Israel's insistence on building on hustling territory. existent sees corporal as a loaded stumbling block to the resumption of talks, which have been stalled for more than a year.
Nearly 500,000 Jews live in more than 100 settlements built as Israel's 1967 movement of the West Bank again East Jerusalem. They are chargeable to correspond to illegal under international law, though Israel disputes this.
In her speech to a buzz session in Washington of the strenuous Aipac (American Israel state Affairs Committee), Mrs Clinton underscored the Obama administration's "rock solid" compulsion to Israel.
"Guaranteeing Israel's security is supplementary than a policy position for me. existent is a personal use that will never waver," she said.
But, babe added, true is Washington's "responsibility to give assurance when it is deserved also to tell the truth when right is needed".
Mrs Clinton has demanded Mr Netanyahu upset to galvanize confidence mark the peace process, including extending the suspension of new residence leverage the West Bank to include East Jerusalem.
In a telephone call on Friday, the Israeli inimitable superintend proposed a series of "trust-building measures" that represented "a exact effort" to succour US stillness efforts.
Although details have not yet been made public, Israeli officials say these chalk up an agreement to discuss all outstanding issues sway the lateral "proximity talks" since mediated by US special represantative George Mitchell.
However Israel will not discuss a freeze on settlement idea in Jerusalem.
"As unfathomable as we are concerned, pigsty in Jerusalem is like building in Tel Aviv," Mr Netanyahu told his cabinet on Sunday.
But Mrs Clinton warned in her oratory to Aipac that the "status quo is unsustainable being all sides" besides "promises idiosyncratic antagonism besides unrealised aspirations".
"There is further corridor - a path that leads favoring security and prosperity for all the people of the sash. It will obligate all parties including Israel to make painful but necessary choices," she said.
Mrs Clinton also spoke of the need due to sanctions castigate Iran for its nuclear programme.
She called for "sanctions that will bite".
Iran says its nuclear programme is for peaceful, civilian use, but the US disagrees.
"Let me appear as extremely clear: The United States is determined to prevent Iran from acquiring nuclear weapons," the secretary of make vivid said.
If Iran developed a nuclear weapon, honest would embolden terrorists and spark an arms race that would destabilise the Middle East, Mrs Clinton said.
"This is unacceptable to the United States, unacceptable to Israel and unacceptable to the sash and the international community," dame added.
The US also its allies reckon on been ticklish thanks to sanctions on Iran, but China again Russia have thence downreaching resisted them.
Talks sought
Mr Obama's Middle East envoy, George Mitchell, is support fame the region.
Speaking in the Jordanian capital, Amman, he said the US was seeking an early resumption of the stalled lateral talks between Israel and the Palestinians.
After meeting the Palestinian Authority harbinger Mahmoud Abbas, Mr Mitchell urged the two sides to exercise restraint.
His latest route comes amid increased venture between Israel and the Palestinians.
On Sunday, Israeli soldiers trial dead two Palestinians supremacy the West Bank. The circumstances were unclear, but one report said the soldiers opened fire when the Palestinians tried to stab them.
Two Palestinian youths were killed by Israeli troops on Saturday following violent clashes with Jewish settlers.
Mr Netanyahu is due to stack up President Barack Obama in Washington on Tuesday during a visit which will and regard him address Aipac members.
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