The recent call by the US government urging Israel to honour the principle of the two-state solution to the Middle East conflict is encouraging. It is difficult, however, to see how the Obama administration can impose this position on Israel's newly-elected right-wing government.

Nevertheless, the US seems eager to resume peace negotiations based on the previously agreed upon principle - land for peace. Seizing upon the changed attitude of Washington, thanks to US President Barack Obama's overtures in Turkey, and his willingness to engage key regional players like Syria, there is room for optimism.

No doubt, this new attitude must be translated into action. The Arab peace initiative, which the Arab League said last month will not remain on the table forever, can be a good start. Next week's visit to the region by Obama's envoy will be watched closely.

However, what is not encouraging is the frustrating deadlock in the inter-Palestinian talks, hosted by Egypt. The talks are supposedly aimed at forming a unity government, rehabilitating the security forces, revamping the Palestine Liberation Organisation (PLO) and agreeing on a unified position towards the Middle East peace process.

But the wrangling over ministerial posts and aid money, intended for the reconstruction of the war-ravaged Gaza Strip, is blocking any agreement, at a time when the Palestinians are faced with an extremist government in Israel.

Arabs surely have confidence in Egypt's ability to sponsor and push for an inter-Palestinian accord. But the Arab League might need to seek the help of other Arab players - who may have influence on some of the Palestinian factions - to complement the Egyptian role. We must not lose the chance offered by the new American attitude towards the Arab world's central issue - Palestine.