JERUSALEM – When President Barack Obama won the Nobel Peace Prize on Friday, his Mideast envoy was hard at work in Jerusalem trying to revive a faltering peace process on which Obama has staked his credibility and that of the United States.
Israel's refusal to freeze settlement construction, a Palestinian refusal to resume peace talks without that freeze and widespread predictions of failure overshadowed George Mitchell's meetings with Israeli and Palestinian leaders — underscoring the tough road ahead for the Obama administration's Mideast peace ambitions.
Mitchell was meeting with Israeli Prime Minister Benjamin Netanyahu when the unexpected award announcement came in.
The prize will not eliminate the multitude of problems that have thwarted peace efforts for decades or persuade historic enemies to yield to Obama's agenda. But it could give a much-needed boost to a U.S. leader whose credibility as a peacemaker in this region has been flagging.
Though many in Israel appeared perplexed by the decision, the country's leadership offered enthusiastic congratulations.
"I believe the Nobel prize will strengthen President Obama's ability to contribute to a comprehensive peace in the Middle East," Defense Minister Ehud Barak, said in a statement.
Shimon Peres, who won the prize himself in 1994, said he was happy the prize committee chose to honor the "most unusual and far-reaching impact" of Obama's leadership.
Obama began his term in office with a Mideast peace push that included an unequivocal call for Israel to halt settlement activity in the West Bank — a call that was enthusiastically embraced by the Palestinians. But though Israeli Prime Minister Netanyahu agreed in principle to the formation of a Palestinian state and said he would limit settlement construction for a limited time, he refused to agree to a full halt.
At a summit meeting last month in New York, Obama appeared to yield to the Israelis, which — along with Obama's growing domestic woes — made him appear weak to both sides.
Alon Liel, a Hebrew University political scientist and a former director of Israel's Foreign Ministry, called the Nobel decision "brilliant."
Obama's Mideast peace momentum has suffered recently and the president and his team have appeared to lose steam, he said.
"It's a great idea, because it tells him, 'Don't break. The world appreciates you.' It could give new energies, and an indication to people in this region that the world is not going to give up on this idea," Liel said.
But many are skeptical. Only Thursday, Israeli Foreign Minister Avigdor Lieberman said no peace deal is possible soon.
"Anyone who says that within the next few years an agreement can be reached ending the conflict ... simply doesn't understand the situation and spreads delusions," Lieberman told Israel Radio. The foreign minister doesn't set policy, but his views are shared by many in Israel.
Ismail Haniyeh, the prime minister of the militant Hamas government that rules Gaza, said that without a change in what he said was unfair U.S. support for Israel, "I think this prize won't move us forward or backward."
The Palestinians have been sticking to their demand for a full settlement freeze, and Abbas was expected to reiterate that position with Mitchell on Friday. With the Israelis consistently rebuffing that demand, that would rule out new talks.
Abbas has been weakened by public protests against his decision not to pursue war crimes charges against Israel over the Gaza fighting earlier this year. Criticized for buckling to Israeli and U.S. pressure, he could find it far more difficult to compromise on his call for a settlement freeze.
In an interview published Friday in the Israeli daily Haaretz, Jordan's king, Abdullah II, warned that the sides were "sliding back into the darkness."

In Jerusalem, there were scattered clashes Friday in the city between police and Muslim protesters. Several protesters and policemen were lightly hurt.

The friction, in which no one has been seriously injured, appears to have been sparked by rumors among Palestinians about an attempt by Jewish extremists to harm the Islamic holy sites in the compound known to Jews as the Temple Mount and to Muslims as the Noble Sanctuary.