SHARM EL-SHEIKH, Egypt (AFP) – U.S. 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 criticized 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 year... 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.""
Bush has faced Arab skepticism over the chances of Israeli-Palestinian peace with negotiations so far failing to make any visible progress -- and Arab anger over perceived bias towards the Jewish state.
The president began his tour in Israel where he addressed parliament to mark the state's 60th anniversary, hailing US ties with its staunch ally and making only brief mention of Palestinian statehood aspirations.
""Bush's speech in front of the Knesset angered us,"" Palestinian president Mahmud Abbas told reporters in the Red Sea resort of Sharm el-Sheikh during the Middle East World Economic Forum (WEF).
""We don't want the Americans to negotiate on our behalf... All that we want from them... is a minimum level of neutrality,"" Abbas said. ""We have asked that the American position be balanced.""
On Saturday, the U.S. leader pledged his determination to help achieve the ""dream"" of a Palestinian state, but Abbas spokesman Nabil Abu Rudeina laid the blame for the slow pace of negotiations on Israel.
""What Bush dreams should be implemented on the ground,"" he said.
""We are not at the point where the president is going to have a meeting with president Abbas and (Israeli) Prime Minister (Ehud) Olmert to try to declare a vision,"" National Security Adviser Stephen Hadley told reporters.
U.S. Secretary of State Condoleezza Rice said later that negotiators from both sides were holding serious discussions in private and that these talks would probably intensify.
""I can tell you for certain that there is more going on in private but that's the way people actually negotiate,"" she told reporters traveling home with Bush aboard Air Force One.
""I don't want to suggest that they are ready to make an agreement and you just don't know it. But I do know how seriously they are discussing all of the conditions,"" she said.
Mubarak earlier told the WEF that any peace deal must meet Palestinian demands.
""Anyone who believes that cover will be provided for an agreement that does not fulfill the demands (of the Palestinians) is mistaken.""