Obama appeals to Muslim world in address

US President Barack Obama has thrown his weight behind the tumultuous drive for democratic change in the Arab world and presented his most detailed vision yet on the path to elusive Israeli-Palestinian peace.

Obama, in his much-anticipated 'Arab spring' speech, hailed popular unrest sweeping the Middle East as a 'historic opportunity' and said promoting reform was his administration's top priority for a region caught up in unprecedented upheaval.

He also ratcheted up pressure on Syrian leader Bashar al-Assad, saying for the first time that he must stop a brutal crackdown or 'get out of the way,' and prodded US allies Yemen and Bahrain as well for democratic transformation.

Obama's bid to reset ties with a sceptical Arab world was aimed at countering criticism over an uneven response to the region's uprisings that threaten both US friends and foes and his failure to advance Israeli-Palestinian peacemaking.

His blunt language toward US ally Israel about the need to find an end to its occupation of Arab land could complicate his talks on Friday with Israeli Prime Minister Benjamin Netanyahu while easing Arab doubts of his commitment to even-handed US mediation.

'The dream of a Jewish and democratic state cannot be fulfilled with permanent occupation,' Obama told an audience of US and foreign diplomats at the State Department in Washington.

Most of Obama's speech focused on the unrest convulsing the Arab world, though he did not abandon his approach of balancing support for democratic aspirations with a desire to preserve longtime partnerships seen as crucial to fighting al Qaeda, containing Iran and securing vital oil supplies.

'The people have risen up to demand their basic human rights. Two leaders have stepped aside. More may follow,' he said.

Seizing on a decades-old conflict long seen as a key catalyst of Middle East tensions, Obama went further than he has before in offering principles for resolving a stalemate between Israel and the Palestinians.

But he stopped short of presenting a formal US peace plan -- an omission that could disappoint many in the Arab world -- after having failed to make progress on the Israeli-Palestinian front since taking office in 2009.

Among the parameters he laid down was that any agreement creating a state of Palestine must be based on borders that existed before Israel captured the West Bank in a 1967 Arab-Israel war but "with mutually agreed swaps" of land.

Though not a US policy shift in itself, Obama's insistence on that point -- plus his criticism of continued Israeli 'settlement activity' -- sends a message to Israeli Prime Minister Benjamin Netanyahu that that Washington expects the Jewish state to make concessions.

Obama also reaffirmed an unshakable commitment to Israel's security and condemned what he called 'symbolic actions to isolate Israel at the United Nations,' referring to the Palestinians plan to seek General Assembly recognition for statehood in September.

But he acknowledged that a new reconciliation deal between the Palestinian Authority and the Islamist group Hamas raised 'legitimate questions' for Israel, which has condemned the accord as blocking any new peace talks.

Arab reaction to speech

The Middle East has moved on since the US president addressed Muslims from Cairo two years ago, transformed by uprisings that have already ousted two autocrats.

As he addressed the region again today, some Arabs said Barack Obama was not keeping pace of the change, others welcomed his fine words but wanted more action and some said they were too busy with the regional turmoil to listen to him.

Obama today sought to recast ties with Arabs, pledging support for democratic change, Middle East peace and economic aid to further the transformation.

In 2009, he sought to rebuild US relations with Muslims with a speech at Nafaa's university. Then too he voiced a commitment to democratic change and Middle East peace. Many at the time praised his words but also wanted action.

In Benghazi, the eastern Libyan city controlled by rebels fighting longtime ruler Muammar Gaddafi, a spokesman said rebels welcomed today's speech but were cautious.

There was greater enthusiasm from other Libyans in Benghazi, which was the target of a convoys of Gaddafi's troops until U.S. and other NATO warplanes and missiles stopped them.

Many Arabs question why Obama's administration has backed military intervention in Libya, imposed sanctions on Syria but failed to take a similar firm line against Bahrain.

Obama's bid to reset ties with a sceptical Arab world was aimed at countering criticism over an uneven U.S. response to the region's uprisings that threaten both U.S. friends and foes, and his failure to advance Israeli-Palestinian peacemaking.

Obama gave detail on the boundaries for any future Palestinian state but also outlined Israeli security needs. And he did not offer a formal peace plan.

President Mahmoud Abbas voiced appreciation for Obama's efforts to resume peace talks.

But Samir Awad, a political analyst at the West Bank's Birzeit University, said: 'Obama did not come up with any new position. He totally adopted the Israeli position and that is not the role of an honest mediator.'

The US president promised $1bn debt relief and other economic support for Egypt, whose economy has been hammered since the uprising drove out tourists and investors.