"The Government of Israel expresses its hope that this important speech in Cairo will indeed lead to a new period of reconciliation between the Arab and Moslem world and Israel.
We share President Obama's hope that the American effort heralds the beginning of a new era that will bring about an end to the conflict and lead to Arab recognition of Israel as the homeland of the Jewish people, living in peace and security in the Middle East.
Israel is committed to peace and will make every effort to expand the circle of peace while protecting its interests, especially its national security".
The statement made no mention of settlements, which Obama said should not be expanded, nor Palestinian statehood.
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