TRANSCRIPT: McCain: Obama's Plan Could 'Reverse' Iraq Progress

My policy in support for the state of Israel has been very consistent. I have visited there many, many times. I know the leaders; I know the situation very well. I would be personally engaged in the efforts to bring about a peaceful settlement between the state of Israel and the Palestinian Authority.

This is a highest priority. I've been involved in these issues for many, many years. I know how to move forward with a peaceful resolution of a terrible situation, which is now exacerbated by the threat of Iranian nuclear weapons.

WRIGHT: Just on a simple but symbolic issue, should the U.S. move its embassy to Jerusalem?

MCCAIN: Sure. I've always advocated that.

WRIGHT: All right. You've been touring here in the states, had the domestic stage all to yourself, and yet we're talking an awful lot about foreign policy, it seems, every day. You've almost picked a fight on Iraq policy or Afghanistan policy with Senator Obama. Do you kind of feel like you're going to be stuck playing defense from now until November?

MCCAIN: Oh, I haven't picked any fights to start with. Second of all, I have a concrete plan for energy independence. Senator Obama says no to off-shore drilling, no to reprocessing spent nuclear fuel, no to storage.

I have a positive proposal. People want a little break at the gas pump, a little gas tax holiday. And I'm very happy with where we are, David.

WRIGHT: But I guess what I'm just...

MCCAIN: We are basically tied in the polls today in every national poll or somewhat behind. I'm very happy with where we are. I'm playing offense throughout this thing.

WRIGHT: But I suppose what I meant by the question is that, you know, it seems like the narrative of this campaign is being driven by whatever Senator Obama does and that you're left to kind of react to that.

MCCAIN: It may seem like that to you. It doesn't seem like that to me. We have put forth a positive agenda for the future of the country. We're getting very good crowds. We're doing well in the polls. We -- our campaign contributions are going well enough for us to run a good campaign. So I'm very happy with where we are.

WRIGHT: On gas prices, you've got a new ad out. It seems to suggest that high prices at the pump are Senator Obama's fault. How is that fair?

MCCAIN: If you're not part of the solution, you're part of the problem. He has said no to every proposal that would help this nation emerge from this terrible problem of gas prices. He's against nuclear power. He's against off-shore drilling. He's against the gas-tax holiday. So if you're not part of the solution, you're part of the problem.

WRIGHT: Gas prices dropped this week. Why?

MCCAIN: Because -- one reason is that because the president of the United States announced that we're going to stop the moratorium for off-shore drilling and urging the states to do the same. That sends a message. That's one of the reasons. There's other reasons.

WRIGHT: We're told that Thursday is going to be a big show-stealing surprise. Are you going to name your vice president?

MCCAIN: We're not talking about it.

WRIGHT: Probably not?

MCCAIN: We're not talking about it.

WRIGHT: So that's not a denial?

MCCAIN: We're not talking about it. That's been my consistent statement throughout, David.

WRIGHT: We'll know when you tell us.

MCCAIN: Thank you.

WRIGHT: All right, thanks so much, Senator. Appreciate it.

For more read ABC News' story HERE.

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