But Biden's speech was devoted heavily to praising the close U.S. relationship with Israel. He said the U.S. has "no better friend" than Israel and said the U.S. "stands resolutely beside Israel against the scourge of terrorism."

His remarks follow comments by Palestinian President Mahmoud Abbas, who told visiting U.S. Vice President Joe Biden Wednesday that it was not enough for the Israeli decision to be condemned, it also had to be cancelled.

The Vice-President met with Israeli Prime Minister Benjamin Netanyahu to discuss the peace process and Iran's nuclear program. It is thought that the US does not want Israel to take military action against Iran but Biden reiterated the determination of the US to prevent Iran from developing nuclear weapons. At one point he told a news conference, "Progress occurs in the Middle East when everyone knows there is simply no space between the United States and Israel."

During the proximity talks, negotiating teams will meet separately with the US Middle East envoy George Mitchell, who will shuttle between them.

Special Middle East envoy George Mitchell, has been in Israel since Saturday, and has already begun the process by meeting with Israeli Prime Minister Binyamin Netanyahu. The PLO, following the endorsement of the Arab League, have also consented to indirect talks.

Senior Palestinian official Yasser Abed Rabbo told Palestinian radio the success of the talks will depend on whether Washington is able to pressure Israel into stopping settlement expansion.

Sunday's decision by the Palestine Liberation Organization marks a first achievement for US diplomacy in the Israeli-Palestinian arena. However, the Palestinians warned they would walk away if the outlines of a border deal with Israel have not emerged after four months.

U.S. Middle East envoy George Mitchell will land in Israel on Saturday night, and the American administration is hoping the sides will declare the beginning of indirect talks the following morning, ahead of the arrival of U.S. Vice President Joe Biden on Monday.

The meeting was followed up with another confab in Iran last weekend entitled "Islamic and National Solidarity with the Palestinian People." The summit was attended by the leaders of Hamas, Hezbollah and Syria. All three again denounced Israel.

On Feb. 25, the military concluded a command exercise that simulated a two-front war with Hamas and Hizbullah. The exercise included a scenario of massive missile and rocket strikes on Israel from Lebanon and the Gaza Strip.

On Thursday Ahmadinejad and Assad together unleashed vicious rhetoric against Israel, with Ahmadinejad declaring that the “criminal” state of Israel is doomed, and Assad charging that Israel “is capable of aggression at any point.”

We hope that that will commence shortly. We think it is absolutely necessary that they begin to talk about the final-status issues that divide them, that have perpetuated the conflict over all of these years.

The United States is urging Syria and Israel to show restraint as America seeks to renew peace talks.

"I have basis to hope, in a realistic way, that in the coming weeks we will resume the peace process with the Palestinians, without preconditions," the prime minister told the Herzliya Conference at the Interdisciplinary Center on Wednesday evening.

He also said he could not resume peace talks with Israel until they stop construction in east Jerusalem.

"The lack of a solution to the problem of border demarcation within the historic Land of Israel - and not an Iranian bomb - is the most serious threat to Israel's future," Barak told a Tel Aviv conference.

Virtually every nation in the world is hoping for some sort of solution to this festering problem that has brought terrorism to their own doorsteps.

Year after year, and plan after plan, the hopes of a peace agreement between Israel and the Palestinians has risen and fallen, always coming short of complete satisfaction to both sides.

There are many tangled issues that make it difficult for the two sides to agree. Palestinian leaders demand that all the land lost to Israel in the ’67 war be returned in any peace settlement.

The Israelis have established settlements of Jewish people in these disputed areas over the years. Approximately 300,000 Jewish people live in these outposts. However, Israel has said they would be willing to give up some of these areas in the process and trade Israeli land to the Palestinians in exchange for the others. - more -

"We thought at the time that this could provide the necessary flexibility in the negotiations, but in practice, every time someone showed flexibility, the other side tried to pin him down."

"The [Hamas] charter was drafted more than 20 years ago," Dwaik noted, adding that his movement would even be prepared to "nullify" the document.

Washington is now considering the possibility of launching "proximity talks" between Israel and the Palestinians, as Palestinian Authority President Mahmoud Abbas continues to object to direct talks.

Meanwhile, Secretary of state Hillary Clinton is trying to recruit Egypt to host a possible meeting to resume direct negotiations between Prime Minister Benjamin Netanyahu and Palestinian President Mahmoud Abbas.

The missile volleys which the system succeeded in intercepting included a number of rockets that mimicked Kassam and longer range Grad-model Katyusha rockets that are known to be in Hamas's arsenal.

President Barack Obama's attempt to restart the negotiations during his first year in office began with much fanfare with the appointment of Northern Ireland peace broker and former Sen. George Mitchell.