JERUSALEM — The Bush administration has conceded that an Israeli-Palestinian peace deal is no longer possible by the end of its term and is preparing to hand the fragile, unfinished U.S.-backed peace effort to President-elect Obama.
After months of publicly insisting that an agreement could be sealed by the year- end deadline set by the two sides and Bush last November in Annapolis, Md., U.S. officials said Thursday for the first time it would have to wait.
“We do not think it is likely it will happen before the end of the year,” White House spokeswoman Dana Perino said in Washington after Secretary of State Condoleezza Rice acknowledged as much at the start of a Mideast trip.
Instead, amid political uncertainty in Israel, where a corruption scandal is forcing Prime Minister Ehud Olmert from office, the administration is focused on keeping the two sides from backsliding. Rice wants them to produce a place-holding affirmation of their commitment to the peace process.



