US President George W Bush is due in Saudi Arabia following a three-day visit to Israel.

His talks with King Abdullah are expected to focus on oil production and Iran's nuclear activities.

Mr Bush's trip to Israel coincided with the 60th anniversary of the country's foundation. He told MPs in Jerusalem the US was Israel's closest ally.

While not visiting the West Bank or Gaza Strip, Mr Bush is due to meet the Palestinian leader in Egypt later.

King Abdullah is expected to reject a renewed appeal to increase Saudi oil production to reduce soaring fuel prices.

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Two-minute silence

Mr Bush and his wife Laura are due to conclude their Israeli visit with a tour of the Bible Lands Museum and roundtable discussion with young Israelis.

"Israel's population may be just over seven million, but when you confront terror and evil, you are 307m strong, because the United States of America stands with you," Mr Bush said on Wednesday to rapturous applause from Israeli lawmakers.

As the US president was speaking, Palestinians marked the Nakba - the "catastrophe" in which 700,000 Palestinians were displaced in the war that followed Israel's 1948 creation.

A two-minute silence was observed during protest rallies were held across the West Bank and Gaza.

Palestinian Authority President Mahmoud Abbas labelled Israel's occupation "mankind's shame".

But while he vowed to end Israel's occupation of Palestinian land, Mr Abbas said his hands were extended in peace.

In his speech to the Knesset on Wednesday, Mr Bush backed Israel's refusal to negotiate with the Islamist Hamas movement, saying it should never be forced to deal with "killers pledged to its destruction".

Israeli PM Ehud Olmert said there should be a different Middle East over the next 60 years that would include a democratic homeland for Palestinians.

He also said he thought the Israeli people and parliament would overwhelmingly back a peace agreement with the Palestinians.

A number of hardline Israeli MPs walked out as he spoke.

(BBC)

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