Tony Blair said he felt there was "a moment of opportunity" during his first trip to the Middle East since being appointed the Quartet's Representative.

In a preliminary visit, Tony Blair heard the views of key Israelis and Palestinians about the issues that have to be addressed in order to fulfil the demanding mandate he has taken on. He also took time to hear from a number of important Arab leaders their views on the situation and consider with them how best we can jointly make progress.

Mr Blair, speaking after talks with Palestinian Prime Minister, Salam Fayyad, said: "I think there is a sense of possibility at the moment. I think this is a moment of opportunity."

Prime Minister Fayyad praised Mr Blair's "intimate knowledge of the issues."

After an earlier meeting with Israeli President, Shimon Peres, he said translating those possibilities "into something" would require work and thought "over time".

"Your success is our success. Your dreams are our dreams," President Peres told reporters after their meeting. "I feel this is a serious window of opportunity for peace, but the duration is not too long. We will have to help you."

During the five-day trip he also held meetings with President Abbas in Ramallah, and Prime Minister Olmert in Jerusalem. Mr Blair also met with senior figures in Jordan, Bahrain and the United Emirates, all of whose support will be important in helping to build Palestinian institutions and advance the peace process.

Mr Blair plans to return to the region for the first two weeks of September before reporting to the Quartet Meeting later that month.