In my decades as a public servant, I have strongly promoted the Arab-Israeli peace process. During recent months, I argued that the peace plan proposed by Saudi Arabia could be implemented under an Obama administration if the Israelis and Palestinians both accepted difficult compromises. I told my audiences this was worth the energies of the incoming administration for, as the late Indian diplomat Vijaya Lakshmi Nehru Pandit said: "The more we sweat in peace, the less we bleed in war."

But after Israel launched its bloody attack on Gaza, these pleas for optimism and co-operation now seem a distant memory. In the past weeks, not only have the Israeli Defence Forces murdered more than 1,200 Palestinians, but they have come close to killing the prospect of peace itself. Unless the new US administration takes forceful steps to prevent any further suffering and slaughter of Palestinians, the peace process, the US-Saudi relationship and the stability of the region are at risk.

Prince Saud Al Faisal, the Saudi foreign minister, told the UN Security Council that if there was no just settlement, "we will turn our backs on you". King Abdullah spoke for the entire Arab and Muslim world when he said at the Arab summit in Kuwait that although the Arab peace initiative was on the table, it would not remain there for long. Much of the world shares these sentiments and any Arab government that negotiated with the Israelis today would be rightly condemned by its citizens. Two of the four Arab countries that have formal ties to Israel - Qatar and Mauritania - have suspended all relations and Jordan has recalled its ambassador.

America is not innocent in this calamity. Not only has the Bush administration left a sickening legacy in the region - from the death of hundreds of thousands of Iraqis to the humiliation and torture at Abu Ghraib - but it has also, through an arrogant attitude about the butchery in Gaza, contributed to the slaughter of innocents. If the US wants to continue playing a leadership role in the Middle East and keep its strategic alliances intact - especially its "special relationship" with Saudi Arabia - it will have to drastically revise its policies vis a vis Israel and Palestine.

The incoming US administration will be inheriting a "basket full of snakes" in the region, but there are things that can be done to help calm them down. First, President Barack Obama must address the disaster in Gaza and its causes. Inevitably, he will condemn Hamas's firing of rockets at Israel.

When he does that, he should also condemn Israel's atrocities against the Palestinians and support a UN resolution to that effect; forcefully condemn the Israeli actions that led to this conflict, from colony building in the West Bank to the blockade of Gaza and the targeted killings and arbitrary arrests of Palestinians; declare America's intention to work for a Middle East free of weapons of mass destruction, with a security umbrella for countries that sign up and sanctions for those that do not; call for an immediate withdrawal of Israeli forces from Sheba' Farms in Lebanon; encourage Israeli-Syrian negotiations for peace; and support a UN resolution guaranteeing Iraq's territorial integrity.

Obama should strongly promote the Abdullah peace initiative, which calls on Israel to pursue the course laid out in various international resolutions and laws: to withdraw completely from the lands occupied in 1967, including East Jerusalem, returning to the lines of June 4 1967; to accept a mutually agreed just solution to the refugee problem according to the General Assembly resolution 194; and to recognise the independent state of Palestine with East Jerusalem as its capital. In return, there would be an end to hostilities between Israel and all the Arab countries, and Israel would get full diplomatic and normal relations.

Recently, President Mahmoud Ahmadinejad of Iran wrote a letter to King Abdullah, explicitly recognising Saudi Arabia as the leader of the Arab and Muslim worlds and calling on him to take a more confrontational role over "this obvious atrocity and killing of your own children" in Gaza. The communiqué is significant because the de facto recognition of the kingdom's primacy from one of its most ardent foes reveals the extent that the war has united an entire region, both Shiite and Sunni. Further, Ahmadinejad's call for Saudi Arabia to lead a jihad against Israel would, if pursued, create unprecedented chaos and bloodshed in the region.

So far, the kingdom has resisted these calls, but every day this restraint becomes more difficult to maintain. When Israel deliberately kills Palestinians, appropriates their lands, destroys their homes, uproots their farms and imposes an inhuman blockade on them; and as the world laments once again the suffering of the Palestinians, people of conscience from every corner of the world are clamouring for action. Eventually, the kingdom will not be able to prevent its citizens from joining the worldwide revolt against Israel.

Today, every Saudi is a Gazan, and we remember well the words of our late King Faisal: "I hope you will forgive my outpouring of emotions, but when I think that our Holy Mosque in Occupied Jerusalem is being invaded and desecrated, I ask God that if I am unable to undertake Holy Jihad, then I should not live a moment more."

Let us all pray that Obama possesses the foresight, fairness, and resolve to rein in the murderous Israeli regime and open a new chapter in this most intractable of conflicts.