President Obama was lavished with praised following his call for world peace during a speech in the Egyptian capital of Cairo Thursday.

“We hope that this important speech in Cairo will indeed lead to a new period of reconciliation between the Arab and Muslim world and Israel," the Israeli government said in a statement. "We share President Obama's hope that the American effort heralds the beginning of a new era that will bring about an end to the conflict and lead to Arab recognition of Israel as the homeland of the Jewish people, living in peace and security in the Middle East. Israel is committed to peace and will make every effort to expand the circle of peace while protecting its interests, especially its national security."

Israeli President Shimon Peres agreed with Obama’s call for the hard work from both Israelis and Palestinians that is necessary to advance peace in the Middle East.

"The concept of peace was born in the Middle East and constitutes the cornerstone of all three monotheistic faiths – Christian, Jewish and Muslim – and it is incumbent on the people of Abraham to unite to meet the challenge and together realize the vision of a sustainable peace in the Middle East," he said.

The reaction by Palestinian authorities was just as hopeful. Saeb Erakat, chief Palestinian negotiator, especially liked Obama’s call for the creation of a Palestinian state, which he said is essential for lasting peace in the region.

"This was a very important speech, in which President Obama reinforced the message that ending the occupation and establishing a viable and independent Palestinian state was in the mutual interest of Palestinians, Israelis and indeed the entire world. Progress towards peace hinges on both parties implementing their obligations under existing agreements," he said. He also said it added pressure on Palestinians to push for peace and progress in “governance, security and financial-sector reforms." Obama should also be commended, he said, for noting that Palestinians face “daily injustices,” including “dislocation, dispossession and insecurity … the intolerable realities of Israel's occupation, especially in Gaza, as well as the importance of Jerusalem to all faiths and peoples, including Palestinians, Christians and Muslims."

Nabil Abu Rudeineh, adviser of Palestinian President Mahmoud Abbas, said Obama was "very encouraging, and this is a new start and different American policy. This kind of change is very important for the whole region."