President George W. Bush, in the Middle East to encourage struggling Israeli-Palestinian peace talks, has emphasized historic ties with Israel saying the United States was its "oldest and best friend in the world."
Bush, in Jerusalem to commemorate the 60th anniversary of Israel's creation, will visit the Roman-era desert fortress of Masada and give a speech to parliament on Thursday.
Before making his second trip this year and also of his presidency to Israel, Bush had expressed hope that a peace accord could be reached by the time he leaves office in January, despite obstacles that have cropped up since promises were made in Annapolis, Maryland, last November.
In the latest setback to a deal with Palestinian President Mahmoud Abbas, Israeli Prime Minister Ehud Olmert has been urged to resign over suspicions he took bribes from a U.S. businessman.
Olmert has denied wrongdoing but has pledged to resign if indicted, and this could delay any peace accord.
Violence around the Gaza Strip still hampers peace efforts. A rocket fired from Hamas-controlled Gaza struck a shopping mall in the southern Israeli city of Ashkelon and wounded several people on Wednesday as Bush and Olmert met in Jerusalem.
An Israeli air strike later killed two Hamas fighters.
The White House condemned the attack and blamed Hamas, which the United States considers a terrorist organisation.
Hamas says it aims to destroy Israel, replacing it with an Islamic state also embracing the West Bank and Gaza. But it has also offered Israel a conditional ceasefire.
In his address to the Knesset, Bush will reiterate that the United States was and remains Israel's closest friend and ally.
