The New Nation - Internet Edition

AFP, Sharm El-Sheikh

US President George W. Bush has wrapped up a regional tour by insisting that peace in the Middle East was possible by the end of the year but that it required "tough sacrifices".

In a speech to an economic forum in Egypt on Sunday, Bush also again took aim at arch-foe Iran over its nuclear drive and criticised nations in the region over the lack of political freedom and human rights.

"I firmly believe that with leadership and courage, we can reach that peace agreement this yeart This is a demanding task, and it requires action on all sides," he said.

"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."