But with a fresh West Bank shooting attack and a persistent deadlock over Jewish settlements, Obama acknowledged skepticism "in some quarters" about his prospects for succeeding where so many U.S. leaders have failed and said he was under no illusions about the tough challenges ahead.

Wading into peacemaking a day before the resumption of face-to-face negotiations after a 20-month hiatus, Obama strode to the podium flanked by Israeli Prime Minister Benjamin Netanyahu, Palestinian President Mahmoud Abbas, Egyptian President Hosni Mubarak and Jordan's King Abdullah.

Netanyahu and Abbas shook hands and voiced commitment to the U.S.-sponsored diplomatic drive, which sets a one-year target for reaching a peace deal on Palestinian statehood, a time frame most analysts call a long shot.

But the fragile peace process already faced a major stumbling block with Israel resisting any formal extension of a partial freeze on construction in Jewish settlements in the occupied West Bank. Abbas has threatened to pull out of the dialogue if building resumes after the September 26 expiration of the moratorium.

Reuters