Palestinian officials are hailing U.S. President Barack Obama's speechto the Muslim world as a good first step toward resolving the MiddleEast conflict. Israel said it hoped the U.S. president's speech willhelp usher in a new period of reconciliation in the region.

Itwas a speech to which many Israelis were not looking forward to. President Barack Obama had stepped up his calls for a total freeze onJewish settlements in the West Bank and for Israel to allow Palestinianstatehood - things that Israel's leadership refuses to do.

Palestinians, Israelis Have Mixed Reactions to Obama Speech

In the end, the speech had something for everyone.

Palestinians, Israelis Have Mixed Reactions to Obama Speech

Hepleased many Israelis by calling for Palestinians to abandon violence,saying the Islamist militant group Hamas must recognize Israel's rightto exist, and calling for the prevention of a nuclear standoff withIran.

Palestinians, Israelis Have Mixed Reactions to Obama Speech

Many Palestinians were pleased to hear the U.S. leaderrepeat his call for an end to Jewish settlements in the Palestinianterritories, and for Israel to realize the only way to resolve theconflict is - in his opinion - the two-state solution.

Aspokesman for Palestinian President Mahmoud Abbas said the speech was agood start towards a new policy that recognizes the suffering of thePalestinians.

Political analyst Mahdi Abdel Hadi, director ofthe Palestinian Academic Society for the Study of International Affairsin East Jerusalem says the speech contained no new ideas, but went along way to making people feel good about the new U.S. administration'spolicy in the Middle East.

"It was a moving speech. The newelement is [the] changing [of] the format of the political game, thetools of the political game, and the scene of the political game. Itis here," he said. "It is the Middle East. It is not Washington. Itis not Paris. It is not London. It is me, here, knocking on your doortelling you, "Trust me, accept me, and I can make a difference."

SomeIsraelis had been concerned Mr. Obama might step up his criticism ofthe Jewish State and possibly unveil new policies that would be lessfavorable to Israel, which receives billions of dollars in U.S. aideach year.

A major Israeli newspaper showed a caricature ofMr. Obama wearing a Palestinian head scarf, indicating the belief amongsome Israelis that Obama favors the Palestinians.

Mr. Obamasaid the bond between Israel and the United States is unshakable. Someanalysts say there is reason for Israel not to expect any major changeson the part of its traditional ally and supporter.

An Israeligovernment statement said Israel hopes President Obama's speech willhelp usher in a new period of reconciliation in the Middle East.

PoliticalScience Professor Abraham Diskin of Hebrew University in Jerusalem sayshe is not optimistic Mr. Obama's strategy of softening the U.S. imageto the Muslim world will bring peace.

"There is no question thatMr. obama is a great person, a bright person, a great speaker, and aperson who definitely appears - and I believe truthfully - as someonewho believes in a vision," he said. "I am afraid that the result of thespeech today, unfortunately, is going to be at the end of the road,more violence. Too many times, when people like Obama came with such avision, it was understood as weakness."

While the speechcontained no surprises in terms of U.S. policy on theIsraeli-Palestinian conflict, it did signal what many here see as a newattitude by the United States.

This U.S. president has takenon the Middle East peace process early on in his term, unlike some ofhis predecessors who have stepped up pressure only at the end of theirtenures.

Many here perceive this as a sign the newadministration is placing a higher-than-usual priority on resolving theconflict. With that hope comes the expectation that words will betranslated into actions.