PM Netanyahu on NBC 'Today' show on Iran and Peace process

Prime Minister Netanyahu said Monday that Israel cannot live side by side with a new Palestinian state if it must continually be in fear of attack.

The prime minister said his concern about Israel's security "is not a political exercise,We've got an enclave in Gaza and we can't have rockets in Tel Aviv," he said.

Netanyahu said that Israel has been pummeled by attacks from its Palestinian territories: "Let's just think about seven rockets in New York, not to mention 7,000 in Tel Aviv ... Of course, that's (demilitarized zone) a requirement for peace."

On the issue of new settlements in the West Bank, he said, "This is a subject that I have discussed with" Washington.

"I think that President Obama and I are trying to reach a common understanding of this," he said. "I think we'll find some common ground."