Condoleezza Rice arrives in Israel today hoping to breathe new life into the stalled peace process after offering Arab leaders $20 billion (£10 billion) in arms in return for promises to help to stabilise Iraq and counter the growing influence in the region of Iran.

But the weapons package failed to win any fresh guarantees from the leaders at a meeting in the Egyptian Red Sea resort of Sharm el-Sheikh yesterday, falling well short of Washington’s hopes for a dramatic show of support. Instead, they reiterated past pledges, promising continued financial and political support for Iraq and echoing vows to fight terrorism — goals that they admitted have not yet been met.

“The commitment was always to help a united Iraq to reach that point of full stability, and that we have been trying to do over the last four years,” said Ahmed Aboul Gheit, the Egyptian Foreign Minister, after a meeting with Dr Rice and Robert Gates, the US Defence Secretary, who are on a rare joint tour of the region to rally support for the faltering US-backed Government in Baghdad.

Dr Rice, stepping up diplomatic pressure, continued to appeal to Iraq’s moderate neighbours, urging support for Iraqi unity: “All parties need to really now throw their weight behind this effort for national reconciliation,” she said. “It means an intensification of the efforts of those who have influence [in Iraq].”

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However, some analysts expressed scepticism that the weapons offer would have any influence in Iraq or in deterring Iran’s nuclear ambitions. Some said that the strategy could inflame the region further. Iran’s Foreign Minister dismissed it angrily as fruitless, while his Syrian counterpart condemned it as dangerous.

Dr Rice will press forward with a renewed effort to negotiate a peace agreement between the Israelis and Palestinians based on an Arab initiative endorsed recently by the United States. The plan calls for normalisation between Israel and its moderate Arab neighbours in exchange for an Israeli withdrawal to 1967 borders and a “just solution” for Palestinian refugees. Expectations have been running unusually high, with officials from both sides of the Israeli-Palestinian divide speaking of a renewed momentum towards peace.

“There has been progress on a number of issues with the Palestinians and also there has been a different atmosphere — one of opportunity for progress which should be seized and built upon,” said a spokesman for Ehud Olmert, the Israeli Prime Minister.

Some Palestinian leaders also pinned cautious hope on Washington’s latest diplomatic push: “There is movement on the Palestinian side with the international side,” Qais Abul-Karim, a Palestinian Legislative Council member, said, though he emphasised that Dr Rice’s visit would succeed only in laying the groundwork for a planned peace summit between the Israelis and moderate Arab states in the autumn. The shared optimism reflects a warming of relations between Israel and the Palestinian Authority in the West Bank since the Islamist Hamas movement seized control of the Gaza Strip by force last month.

The Arab initiative, originally drafted by the Saudis in 2004, resurfaced several months ago but foundered over Israeli objections to dealing with a Palestinian Government that included Hamas. With the militant movement now relegated to Gaza, there is more room for Israel to manoeuvre with the Palestinian Government in the West Bank led by Mahmoud Abbas, the moderate Palestinian President.

Mr Abbas received further endorsement yesterday on a visit to Moscow where President Putin said he was certain that the Palestinian leader would do everything necessary to unite his people. “I want to assure you that we will support you as the lawful leader of the Palestinian people. We are certain that you will do everything to secure unity,” Mr Putin said