Cheney to discuss peace and oil on Middle East trip

WASHINGTON (Reuters) - U.S. Vice President Dick Cheney leaves on Sunday for the Middle East where he will try to push Israeli-Palestinian peace talks forward and raise U.S. concerns about record-high oil prices, the White House said.

Cheney will visit Saudi Arabia, Israel, the West Bank, Turkey and Oman in a trip expected to last about a week or more, his office said on Monday.

"His goal is to reassure people that the United States is committed to a vision of peace in the Middle East," U.S. President George W. Bush said after meeting with Poland's prime minister at the White House.

Cheney's long-planned trip comes amid developments likely to complicate peace efforts -- Israel's announcement it was expanding a settlement, and new outbreaks of violence in Gaza and Israel.

Israel on Sunday announced plans to build hundreds of new homes in a Jewish settlement in the occupied West Bank. State Department spokesman Sean McCormack said the plan was "not helpful to the process."

Cheney will press Israeli and Palestinian leaders to uphold their obligations, which include Israel's freezing of settlement expansion and Palestinian efforts to rein in militants.

"We expect both parties involved in the Middle Eastern peace process to adhere to their obligations in the road map and those obligations are clear," Bush said.

Cheney's trip follows a visit by Secretary of State Condoleezza Rice to the region last week, when she urged leaders to move forward with peace talks.

Rice met Israeli Foreign Minister Tzipi Livni in Washington on Monday as part of increased U.S. diplomatic efforts since Palestinian statehood talks were launched in Annapolis, Maryland, in November.

"The U.S. policy on this (settlements) is well known and we have said that it's important to do everything possible to make the atmosphere for Annapolis as good as possible," Rice said.

"We consider -- as I know the Israeli government does, as does the Palestinian leadership -- the fulfillment of road map obligations as a part of the Annapolis process," she said.

The Israeli announcement on settlements was made after a Palestinian gunman killed eight students at a Jewish seminary in Jerusalem last week.

Before that attack, Palestinian leaders had suspended peace negotiations after an Israeli military offensive in the Gaza Strip killed more than 120 Palestinians.

Both sides have promised to resume talks soon.

OPTIMISTIC

Bush, who visited Israel this year for the first time as president, has said he is optimistic a peace deal can be reached before he leaves office in January 2009.

"I'm optimistic leaders will step forward and do the hard things necessary so people don't have to live in deprivation and fear," Bush said.

Cheney also will meet with Saudi King Abdullah at a time when oil prices are hitting record highs of above $108 a barrel.

He was expected to reinforce the message from Bush, who had urged OPEC to increase production during his visit to Saudi Arabia in January. The Organization of the Petroleum Exporting Countries decided not to boost output.

"Obviously we want to see an increase in production," White House spokeswoman Dana Perino said. "Our message remains the same."

Cheney will also continue U.S. efforts to persuade allies to help curb Iran's growing influence in the region.

"When the president traveled there in January at every stop Iran was of interest and concern. And so I don't expect that that changed in the last two months since Iran hasn't changed its behavior at all," Perino said.

The United States has led efforts to pressure Iran, and the U.N. Security Council voted last week for a third sanctions resolution against Tehran over its refusal to halt its nuclear program.

The West suspects the nuclear program is aimed at making weapons, while Tehran says it is to generate electricity.

Cheney was also expected to discuss progress in Iraq.

Regional tensions likely would be discussed in Turkey, which last month staged a military offensive against Kurdish rebels in northern Iraq.

(Additional reporting by Arshad Mohammed; editing by David Alexander and Mohammad Zargham)