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Israelis react to Obama's speech

US President softens language on Hamas, calls for halt to Israeli West Bank settlements.

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The council called on Mr. Netanyahu to emulate former prime ministers Menachem Begin and Yitzhak Shamir and "stand up like a proud Jew and reject Obama's fabricated history."

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Israeli peaceniks respond

Peace activists, on the contrary, took heart at Obama's speech.

"As an Israeli, I'm enthusiastic about him paving a clear road towards peace, setting out clearly that what we aim for is a two-sate solution and an end to settlements," says Uri Avineri, the founder of Gush Shalom (Peace Bloc).

"Also, he included Hamas in the new order, speaking about them respectfully, and without threats, and yet demanding what has to be demanded, but clearly indicating that the US would accept a Palestinian unity government with Hamas in it."

Obama said in his speech that Hamas "does have support among some Palestinians, but they also have responsibilities." He called on the group to unify the Palestinian people – a call to reconcile with Fatah – and to end violence, "recognize past agreements, and recognize Israel's right to exist."

Mr. Avineri noted that these words were bolder and more explicit than many people expected. "What has to be stressed is that Obama has outlined a vision for a world that is totally different from the world Netanyahu lives in. And while the former US president tried to paper over these differences by empty phrases, Obama's trying to bring it out in the open."

Official Palestinian comment

A spokesman for Palestinian Authority President Mahmoud Abbas told Israeli newspaper Haaretz that Obama's speech was a good start.

"His call for stopping settlement and for the establishment of a Palestinian state, and his reference to the suffering of Palestinians ... is a clear message to Israel that a just peace is built on the foundations of a Palestinian state with Jerusalem as its capital," said the spokesman, Nabil Abu Rudeineh.

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