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U.S. President George Bush promised his country would work hard to help the Middle East achieve a peace agreement following talks with the Israeli and Palestinian leaders.

"One thing I've assured both gentlemen is that the United States will be actively engaged in the process, that we will use our power to help you as you come up with the necessary decisions to lay out a Palestinian state that will live side by side in peace with Israel," Bush said Wednesday at the White House.

Israeli Prime Minister Ehud Olmert and Palestinian President Mahmoud Abbas stood at his side. Bush had invited the two to ceremonially begin the first formal, direct talks in seven years.

"No matter how important yesterday was, it's not going to be as important as tomorrow and the days beyond," Bush said, calling on the world community to support both parties.

The U.S. president only made a brief statement and didn't take questions from reporters. Abbas and Olmert didn't make statements.

Bush held one-on-one talks with Abbas and Olmert followed by a joint afternoon session. Bush also held one-on-one talks with both leaders on Monday at the Oval Office ahead of Tuesday's U.S.-hosted Mideast peace talks in Annapolis, Md.

Iran lashes out

Iranian President Mahmoud Ahmadinejad on Wednesday criticized Syria for participating in the peace conference, called the summit a "failure" and said Israel was doomed to "collapse."

"It is impossible that the Zionist regime will survive. Collapse is in the nature of this regime because it has been created on aggression, lying, oppression and crime," Ahmadinejad said after a Cabinet meeting, according to state-run television.

"Soon, even the most politically doltish individuals will understand that this conference was a failure from the beginning," he said in comments reported by the official IRNA news agency.

It was the first time in months Ahmadinejad has spoken out so aggressively against Israel. He suggested Arab states that attended the summit "fell victim to the sinister Zionist regime. They are mistaken if they thought that this summit will bring any achievements for them."

He said any plan that isn't backed by all Palestinians -- citing Hamas -- will fail.

The two sides have agreed to try to reach an agreement by the end of 2008.

Abbas asked Israelis Tuesday to respect the peace process and to put their differences behind them.

"It is time for the circle of blood, violence and occupation to end. It is time for us to look at the future together with confidence and hope. It is time for this tortured land that has been called the land of love and peace to live up to its name," he said

Olmert promised "the negotiations will address all the issues which thus far have been evaded."

Protests

Â鶹ӰÊÓ Middle East Bureau Chief Janis Mackey Frayer said Wednesday that protests were ongoing in the Hamas-controlled West Bank for the second straight day.

"You can never go wrong being pessimistic in the Middle East," Frayer said from Jerusalem. "There have been so many attempts at some sort of final settlement before."

Frayer said there is just as much skepticism on the Israeli side.

"Israeli hard-liners are saying they are going to make it as impossible as they can for Ehud Olmert to make any concessions to the Palestinians," she said.

With files from The Associated Press