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The U.S. president said that solving one problem through a settlement in the region could lead to resolving other problems.

President Joe Biden said on Sept. 25 that an “all-out war is possible” in the Middle East, amid increasing tensions between Israel and the Iran-backed Hezbollah terrorist group.

Appearing on ABC’s “The View,” Biden said that despite that possibility, there is a chance to have a settlement between Israel and Hezbollah “that could fundamentally change the whole region.”

Biden went on to say that the Arab world “very much wants to have a settlement” and that “they’re willing to make arrangements with Israel and alliances if Israel changes some policies.” He did not specify what policies Israel would need to change.

The president also said that a ceasefire between Israel and the Hamas terrorist group—which is also backed by Iran—would have to include the release of hostages taken from Israel who are still being held in Gaza, which Hamas controls.

Additionally, Biden reiterated his call for a two-state solution between the Israelis and Palestinians.

Biden said that solving one problem in the region could lead to resolving another.

“I don’t want to exaggerate it, but a possibility, if we can deal with a ceasefire in Lebanon, that it can move into dealing with the West Bank, if we also have Gaza to deal with,” he said.

Israel and Hezbollah have long exchanged fire, but tensions have increased following the detonation of pagers and walkie-talkies belonging to Hezbollah members last week, causing injuries and deaths in Lebanon, where the terrorist group is based.

Hezbollah has blamed Israel’s intelligence agency, the Mossad, for the blasts. Israeli President Isaac Herzog said that the country was not involved in the attacks.

Hezbollah leader Hassan Nasrallah called the explosions a “severe blow” to the group and said there would be retaliation.

Hezbollah launched a Qader 1 ballistic missile toward Mossad headquarters in Tel Aviv, Israel’s largest city, on Sept. 25, which Israel intercepted. No damage, injuries, or deaths were reported. The IDF retaliated by striking the southern Lebanese site where the missile originated. Hundreds of Hezbollah members have been killed in retaliatory strikes, as well as dozens of Lebanese civilians, according to Lebanese health officials.

Israel Defense Forces head Lt. Gen. Herzi Halevi said Israel will further retaliate for what he said was the first Hezbollah attack directly targeting Tel Aviv.

Since Oct. 8, 2023. Hezbollah has launched near daily strikes on targets in northern Israel, killing dozens of Israeli civilians and soldiers, and forcing the evacuation of many Israeli towns.

“Today, Hezbollah expanded its range of fire, and later today, they will receive a very strong response,” Halevi told troops stationed at Israel’s northern border with Lebanon. “Prepare yourselves.”

Israel is also preparing to conduct a possible ground invasion into Lebanon.

“You hear the jets overhead; we have been striking all day,” Halevi told troops. “This is both to prepare the ground for your possible entry and to continue degrading Hezbollah.”

The exchanges of fire between Hezbollah and Israel come as Hezbollah vowed to support Hamas to fight Israel after the Islamist terror group launched an attack in Israel on Oct. 7, 2023, in what was the largest single-day massacre of Jews since the Holocaust. More than 100 Israelis taken hostage on Oct. 7 remain in Gaza.

The Biden administration has pushed for a ceasefire between the two sides through intermediaries such as Qatar, a state sponsor of Hamas. Negotiations are currently at a standstill, with no deal in sight as the one-year anniversary of the massacre approaches.

The Associated Press and Reuters contributed to this report.