by Yu Zhongwen

U.S. President George W. Bush wrapped up his five-day visit to the Middle East on Sunday, insisting that an Israeli-Palestinian peace agreement is possible within the year but requires "sacrifices", which, does not sell well among Arab leaders and local analysts.

During his stay in the region which took him to Israel, Saudi Arabia and Egypt, Bush hold a series of talks with regional leaders in a bid to push forward the peace talks between Israel and the Palestinians, which, however, scored no visible progress to date.

"I firmly believe that with leadership and courage, we can reach that peace agreement this year. This is a demanding task, and it requires action on all sides," Bush said at his special address at the opening session of the World Economic Forum on the Middle East on Sunday here.

"Palestinians must fight terror and continue to build the institutions of a free and peaceful society. Israel must make tough sacrifices for peace and ease restrictions on Palestinians."

However, He did not suggest concrete steps to resolve the issues that keep a peace agreement from being formed. Analysts said its very difficult to reach major breakthroughs on the core issues such as the final status of Jerusalem, Jewish settlements and Palestinian refugees.

A ceasefire deal being brokered by Egypt between Israel and the Palestinian factions, including Hamas in Gaza is still inconclusive.

Israel and the Palestinian National Authority (PNA) resumed peace talks in November 2007 following a U.S.-hosted conference held in Annapolis. Now that almost half a year has passed, no significant progress has been achieved in the negotiations between Israel and the Palestinians.

Analysts and Arab leaders are pessimistic about a peace deal by year end. Dr. Khadija Elafa, a political analyst in Cairo, said "I don't think Israel and the Palestinians can reach a peace deal at the end of this year" or before the end of Bush's term in early 2009.