by Jean-Luc Renaudie

JERUSALEM - On the eve of US President Barack Obama's much-heralded address to the Muslim world, there was deep unease in Israel on Wednesday that any reconciliation may come at the expense of the Jewish state.

"The American president has the right to try to reconcile with the Muslim world and compete with Al-Qaeda or Iran for its heart," said Transport Minister Yisrael Katz, a close ally of Prime Minister Benjamin Netanyahu.

"We have to make sure that this will not harm our common interests," Katz told army radio on the eve of Obama's address in Egypt.

Over the past few weeks, tensions between staunch allies Washington and Israel have risen to levels unseen in 20 years as Obama's administration has repeatedly demanded that Israel halt all settlement activity in the occupied
West Bank and commit to the creation of a Palestinian state.

Netanyahu, the head of a largely right-wing cabinet, has so far refused to do both and answering US calls would likely topple his government, many analysts say.

"Obama seeks reconciliation with the Muslim world and Israel will pay the price," wrote one commentator on the Ynet news website on May 20, in a sentiment echoed throughout the Israeli press over the past few weeks.

"Obama plans to teach Netanyahu about tough love," wrote the Haaretz newspaper.

A glaring sign of the growing rift is the fact Obama is visiting two Arab countries - Saudi Arabia and Egypt - during his first major trip to the Middle East, but is not stopping in Israel.

In a move that could further wrack up tensions, Haaretz reported that Obama intends to give Netanyahu up to six weeks to present an "updated position" on settlement construction and the two-state principle.

"Obama wants to complete the formulation of a preliminary six-month plan for progress towards a Middle East peace agreement and to present it in July," Haaretz said, quoting an unnamed government official.

Israeli officials have sought to play down the tensions, but the blunt comments from Washington have raised alarm bells in the Jewish state that its most important ally may ease back on its support as it seeks to improve ties with the Muslim world.

"There is intense cooperation between Israel and the United States, but the differences have recently been aggravated," Katz admitted.

While Obama is "friendly toward Israel... he has a different approach (from his predecessor George W. Bush), he is sending different messages to the Arab and Muslim world. It's another reality, which is not easy to come to terms with," he said. -AFP