Obama says time is ripe to resume peacemaking

US President Barack Obama said the time was ripe for Israel and the Palestinians to resume peace negotiations and that America was prepared to extend a hand of peace to Iran if it "unclenched its fist."

In his first interview with Arab television since taking office, Mr Obama told Al Arabiya on Monday night that his administration would adopt a more comprehensive approach in its ties with the Muslim world.

"It is impossible for us to think only in terms of the Palestinian-Israeli conflict and not think in terms of what's happening with Syria or Iran or Lebanon or Afghanistan and Pakistan," Mr Obama told the Dubai-based Arabic satellite channel. He praised Saudi King Abdullah for putting forward an Arab plan for peace in the Middle East. On Iran, Mr Obama said he believed it was important to use all the tools of US power with Tehran, including diplomacy.

"It is important for us to be willing to talk to Iran, to express very clearly where our differences are, but (also) where there are potential avenues for progress," he said.

"If countries like Iran are willing to unclench their fist, they will find an extended hand from us."

"Sending George Mitchell to the Middle East is fulfilling my campaign promise that we're not going to wait until the end of my administration to deal with Palestinian and Israeli peace. We're going to start now," Mr Obama said. He said his administration wanted to begin by listening and talking to those involved without prejudging their concerns.

"We cannot tell either the Israelis or the Palestinians what is best for them... They are going to have to make some decisions," he said.

"But I do believe that the moment is ripe for both sides to realise that the path that they are on is one that is not going to result in prosperity and security for their people. And that instead, it's time to return to the negotiating table."

Israeli Prime Minister Ehud Olmert said on Monday he was "optimistic" because Mr Obama had assured him that he intended to maintain Washington's "traditional commitment" to Israel.