Key world powers called Friday on Arab states to fulfil their promises of aid for the Palestinians and voiced deep concern over the humanitarian impact of a nine-month-old Israeli blockade on the Gaza Strip.

In a joint statement issued after the Middle East Quartet held talks in London, the powers also urged Israel to stop building or extending settlements in the West Bank.

The Mideast Quartet -- the United Nations, the United States, Russia and the European Union -- called on Arab donor states to follow through on commitments to the Palestinians made at a conference in Paris in December.

"The Quartet encouraged the Arab states to fulfil both their political and financial roles in support of the Annapolis process," UN Secretary-General Ban Ki-moon said, citing an agreed statement.

Condoleezza Rice
©AFP/POOL - Leon Neal

US Secretary of State Condoleezza Rice told journalists after Friday's talks: "I think there have been pledges that have been fulfilled but clearly when you make a pledge you ought to fulfil it.

"That is the point that I will be making to all states."

In Paris, the international community pledged more than seven billion dollars (4.5 billion euros) in aid, including 1.5 billion dollars in budgetary support, mostly to be spent on Palestinian civil servants' salaries.

According to US officials, of the 717 million dollars contributed so far, 215 million dollars have come from the United Arab Emirates, Saudi Arabia and Algeria, and Palestinian Prime Minister Salam Fayyad said Friday that Kuwait had agreed to make an immediate payment of 80 million dollars.

Fayyad, speaking after a separate meeting in London on aid for the Palestinians, said the Israeli blockade was the biggest obstacle to economic reconstruction in Gaza.

"Life there is extremely miserable," he told journalists. "There is no substitute to re-opening the crossings."

Palestinians wait to fill their cooking gas canisters in the northern Gaza Strip
©AFP - Mohammed Abed

The Quartet urged Israel to ease the blockade to allow humanitarian supplies into Gaza.

"The Quartet called for continued emergency and humanitarian assistance and the provision of essential services to Gaza without obstruction," Ban added.

Former British prime minister Tony Blair, now the Quartet's envoy, said the situation in Gaza was "terrible."

But he said before the blockade could be lifted, it was essential that rocket attacks from the Hamas-controlled territory into Israel ceased.

Tony Blair
©AFP/POOL - Leon Neal

Aid agencies are warning of an "impending humanitarian crisis" in Gaza.

Oxfam welcomed the Quartet's recognition of the severity of the crisis, but said action was now needed.

"Words are not enough. They must be followed up with decisive, immediate action by Israel and the international community to reverse the effects of the... blockade of Gaza, which has diminished its 1.5 million people to a drip-feed existence," the group said.

The Quartet also called on Israel to "freeze all settlement activity including natural growth, and to dismantle outposts erected since March 2001."

Rice was to go on from London to Jerusalem and the West Bank, to try to kickstart stalled Israeli-Palestinian peace talks and prepare the ground for a visit to the region by President George W. Bush later this month.

Ban Ki-moon
©AFP/POOL - Leon Neal

Blair also voiced optimism that an agreement on a Middle East peace deal was possible "faster than people think."

Israel imposed the blockade after Islamist group Hamas seized power in Gaza in June. Israel this week rejected an Egyptian proposal to ease the restrictions.

Separately, on Iran, a six-power grouping comprising the five permanent members of the UN Security Council plus Germany agreed to make a new offer to Tehran to resolve the nuclear standoff between the West and the Islamic republic.

"I am glad to say that we have got agreement on an offer that will be made to the government of Iran," said British Foreign Secretary David Miliband after talks with his counterparts.

Miliband said the contents of the offer would only be disclosed to Iran.

The West fears Iran wants to use its nuclear programme to make atomic weapons but Tehran insists the drive is peaceful and solely aimed at providing energy for a growing population