Washington - The United States vowed Wednesday to continue working for Middle East peace regardless of who emerges as the winner in Israel's elections.

"We've been working over the years with governments in Israel on trying to bring about - trying to affect the peace process. And that's still going to be our goal," State Department deputy spokesman Robert Wood said.

Elections in Israel on Tuesday failed to produce a clear winner. Foreign Minister Tzipi Livni of the Kadima party and Likud's Benjamin Netanyahu both declared victory with
99 per cent of the ballots counted.

The Kadima party held on as the largest bloc in the Knesset by winning the most seats at 28, but Netanyahu, whose hardline party doubled it share to 27 seats, claimed he is in a better position to form a coalition because of the strong showing of other right-wing parties.

Kadima's previous coalition partner, the Labour Party, under Defence Minister Ehud Barak, finished fourth - its worst showing ever.

Wood said the United States would wait until a new government is formed before commenting on options for moving forward on the peace process but said Washington remains hopeful that a new government will embrace a two-state solution to the conflict with the Palestinians.

"Certainly that's what we have been pursuing. And, you know, again, let's let a government be formed," Wood said. "We certainly hope that a new government will continue to pursue a path to peace. I see no reason to think that a new government ... would do something otherwise." (dpa)