Analysts have cast doubts on the possibility of an Israel-Palestinian peace deal by the end of the year with or without Olmert in office.

The prospect for Israel to cut a comprehensive peace deal with its bitter enemy Syria seemed even more gloomy.

Indeed, the two countries held their first indirect meeting in late May and planned the second for this month, Olmert didn't seem to enjoy the necessary backing at home for a full withdrawal from the Golan Heights, Syria's prerequisite for a peace deal with the Jewish state.

The 20,000 Jewish settlers in the Golan Heights have the popular support, with polls showing that two thirds of the Israelis oppose returning the plateau to Syria.

Meanwhile, Olmert's dramatic announcement that he is negotiating a peace deal with Syria was greeted with overwhelming skepticism in Israel.

In a poll published last month in the Yediot Ahronot daily, only 36 percent said the negotiations are meant to promote peace, while 49 percent of Israelis said they believe Olmert is trying to divert attention from the ongoing police investigation.

Moreover, Olmert seemed equivocal about the concessions on the negotiation table.

While both Syria and Turkey confirmed that Israel agreed to cede the Golan Heights during their talks, Olmert denied the claim when questioned recently by the Knesset (parliament) Foreign Affairs and Defense Committee.

"No obligations were offered – either spoken or in writing – to Syria," Olmert was quoted by the Jerusalem Post as saying, "All I said from February 2007 until May 2008 was 'I know what you want and you know what I want.'"