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Innovation could reshape this region. there is a program here in jerusalem that brings together young israelis and palestinians to learn vital skills in technology and business. an israeli and palestinian have started a venture capital fund to finance palestinian start-ups. over one hundred high-tech companies have found home on the west bank which speaks to the talent and the entrepreneurial shirt of the palestinian people. one of the great ironies of what is happening in the broader region, so much what young people are yearning for, entrepreneurship, education, the pwaeult to start a busine...

But the things they want, they are not so different from what the young people here want. they want the ability to make their own decisions and to get an education, and to get a good job, to worship god in their own way, to get married, to raise a family, the same is true of those young palestinians that i met with this morning. the same is true for young palestinians who yearn for a better life in gaza, that's where peace begins, not just in the plans of leaders but in the hearts of people. not just in some carefully designed process but in the daily connections that sense of empathy that tak...

One you just played from that speech here in jerusalem today, president peres told me, and the quote was america is not chicken. and he said he believes that if president obama has to launch a military strike against iran to prevent them from getting nuclear weapon, they will go ahead and do that. here's president peres. >> well, my experience, first of all, i know that an american president does not announce something by accident. i can also understand that the president wants to try nonmilitary means. everyone will do it in america. the united states doesn't go to shoot before it tries all t...

Game or theory being bandied about in terms of military action. iranian leaders today warning if there is some sort of strike from israel or by extension the u.s. helping out israel, the iranian leadership saying they'll wipe out specifically two israeli cities, tel aviv and hypa. this is real high stake, jon. jon: certainly is. the president began the last hour delivering that speech to mostly college students studentn jerusalem. guess it didn't all go as planned, huh? >> reporter: it didn't. there was a palestinian protester who got up, he was a 24-year-old student, apparently, who got up an...

Iran must not get a nuclear weapon. this is not a danger that can be contained, and as president i've said all options are on the table for achieving our objectives. america will do what we must to prevent a nuclear-armed iran. [applause] jon: but iran has a very different message. iran's supreme leader warning today if iran is attacked, it will strike back and destroy israeli cities. chief white house correspondent ed henry is traveling with the president. he is live in jerusalem now. so you sat down, ed, with israeli president sharon perez. he believes military option for the u.s. is still o...