His Majesty King Abdullah warned on Friday that the entire world would pay the price for failure to resolve the Palestinian-Israeli conflict.

The envisioned resolution, he said, should be based on the two-state formula, which is supported by a majority of Palestinians and Israelis as the only way to bring about security and peace in the region.

In a conversation during the World Economic Forum in Davos on Friday, King Abdullah rejected talk of Jordan playing a role in the occupied West Bank, stressing that the Kingdom does not even accept discussing such an idea.

He added that Jordan's only role would be supporting the Palestinians in their drive to establish their independent state on their national soil.

He emphasised that Jordanian troops will not be a substitute for Israeli army in the West Bank, noting that the Palestinians are seeking their legitimate right to an independent state.

During the session, attended by Her Majesty Queen Rania, the King said the so-called “Jordan option” is totally rejected by Jordanians and Palestinians.

King Abdullah also said he was pessimistic about the prospects for peace.

“As we all know that the core issue in the region is the Israeli-Palestinian issue,” he said. “…It's been going on for so many decades, so much suffering, so much frustration. And it can only get worse if we don't solve the problem."

King Abdullah emphasised that if no serious and effective peace talks start within the next month, then chances to realise peace will largely diminish. He warned that the continuation of the status quo undermines opportunities for creating an independent and viable Palestinian state.

"So if we don't get a clear mandate over the next month or so, then I'm not convinced that we're going to move the process forward," he said.

During the conversation, King Abdullah said US President Barack Obama is committed to the two-state solution and stressed the need for an effective US role in resuming negotiations, noting: "I think the credibility of the US is under question now."

Reiterating that the Palestinian-Israeli conflict is the core issue in the region and that a two-state settlement is the only way to attain peace in the Middle East, King Abdullah said that if this conflict is ended it will be easier to deal with other pressing regional issues.

Responding to a question about Iran, King Abdullah said Jordan opposes a military option in dealing with the crisis over Iran's nuclear capabilities, and called for reaching a diplomatic solution.

He said that every country has a right to possess nuclear energy for peaceful purposes, but that there should “be transparency on nuclear programmes throughout the region, including Israel.”

Asked about the issue of the "Shiite crescent", King Abdullah said he was expressing his concern that certain members of the Iranian government were using an agenda to create the perception of a Shiite crescent, noting that he had been warning of the dangers of a political strategy that would lead to a conflict between Sunnis and Shiites.

The Iraq-Iran war first started as a war of territory and then became an issue of race - Persians against Arabs, he said, adding that this was “wrong”.

King Abdullah also underlined Jordan's support for Iraq's stability and security, emphasising that he believes in the Iraqis' ability and keenness to overcome challenges facing the country.

He also expressed hope that upcoming parliamentary elections would enhance Iraq's stability and security.

King Abdullah pointed out that the Arab and the Islamic world has been threatened by terrorist groups that distort the genuine principles and values of Islam, said that this threat had prompted Jordan to deal with terrorism within and outside of its own borders. "If we feel that there are some who attempt to attack Jordan, we will attack them," the King said.

In this regard, he referred to the terrorist attacks on three Amman hotels in 2005, killing over 60 people and injuring over 100 others, stressing Jordan's right to defend its citizens and their security.

King Abdullah stressed his pride in the efforts exerted by the Jordan Armed Forces and security agencies in protecting Jordan and facing terrorists whom, he said, have nothing to do with Islam.

In response to a question about Jordan's modernisation process, King Abdullah said Jordan's reform process is a partnership between him and the citizens and it seeks to enhance democracy. He also discussed the upcoming parliamentary elections and planned decentralisation programme that seeks to increase Jordanians' participation in decision-making.

Asked how Jordan was able to realise remarkable economic achievements over the past 10 years in spite of a shortage of resources, King Abdullah said Jordan's successes were a result of refusing to accept "no" as an answer from pessimists.