Obama has made the Middle East a priority as he tries to undo some of the devastation wrought by Bush around the world, says Anayat Durrani After eight years of declining American prestige, the administration of United States President Barack Obama aims to bring a new era of American leadership to the international arena. With the new secretary of state in place, the Obama administration is set to work on reversing and repairing the damage left behind, with emphasis on the Middle East. Upon taking the reigns as the new secretary of state, Hillary Clinton made dozens of phone calls to foreign ministers across the globe. Referring to the outgoing administration, Clinton said the world let out "a great exhalation of breath" for the new foreign policy direction the Obama team has set into motion. She added that they have "a lot of damage to repair". Clinton said the Obama administration views defence, diplomacy and development as the three pillars of American foreign policy. "That's not rhetoric. That is our commitment. That's how we are proceeding," she said. With respect to the Palestinian-Israeli conflict, she said the Obama team plans to work on a series of short-term objectives like a durable ceasefire but added, "we remain committed to the long-term objective of a comprehensive peace that provides security in the context of a two-state solution for the Palestinians." On her first trip as US secretary of state, Clinton is not heading to the Middle East, which has typically been customary for previous secretaries of state. Clinton instead plans to travel to Asia -- Japan, South Korea, China and possibly Indonesia in mid-February. The emphasis on Asia demonstrates the administration's interest in expanding relations with China and its resolve to address the North Korean nuclear issue. The trip will also strengthen relations with key US regional allies Japan and South Korea. In her first meetings with senior foreign officials, Clinton met with British Foreign Secretary David Miliband and German Foreign Minister Frank-Walter Steinmeier. The meetings focussed on discussion of the conflict in Afghanistan and how to address Iran's nuclear programme. Demonstrating a major policy shift from Bush on Iran, President Barack Obama has said his administration plans to open direct dialogue with Tehran, which Clinton has said presents "a clear opportunity for the Iranians." On his second day as president, Obama spoke about Gaza for the first time. While he said he was "deeply concerned" about the loss of life in Gaza he reaffirmed that Israel had a right to defend itself from Palestinian rockets. He also added that the policy of his administration would be "to actively and aggressively seek a lasting peace between Israel and the Palestinians, as well as Israel and its Arab neighbours. Now [they] must extend a hand of opportunity to those who seek peace. As part of a lasting ceasefire, Gaza's border crossings should be open to allow the flow of aid and commerce." Obama's new Middle East envoy, George Mitchell, has already visited the region. Although Israel and Hamas-led Palestinian groups agreed to a ceasefire on 18 January, sporadic fighting has erupted between Israeli troops and the Palestinians. Mitchell ended his Middle East tour Sunday after meetings in Israel, the Palestinian territories, Egypt, Jordan and Saudi Arabia. Mitchell said that securing a sustained, workable ceasefire between Israel and Hamas was of "critical importance". During Obama's much talked about interview with Al-Arabiya television news channel, the president proclaimed, "I think it is possible for us to see a Palestinian state." He would not put a time frame on when that would be achieved but said that it would allow freedom of movement for Palestinians, trade with other countries, and the "creation of businesses and commerce so that people have a better life". While President Obama spoke to Al-Arabiya, former president Jimmy Carter told the English Al-Jazeera station the same day that he believes that Obama should at some point meet with Hamas, an option Obama opposes. Like Northern Ireland, the Palestinian-Israeli conflict has its own complexities, and then some. There is the matter of the strong influence of the Israel lobby on American foreign policy in the Middle East. Analysts warn that Obama must show an even-handed approach to fostering peace negotiations to be taken as a serious peace broker, which will inevitably involve standing up to the lobby. Most argue that Obama, at the very least, must block expansions of Jewish settlements on the West Bank. Meanwhile, President Obama released $21.3 million from the US Emergency Refugee and Migration Assistance Fund for use in the Palestinian region. The money will go to the UN Relief and Works Agency for Palestine Refugees in the Near East, the International Committee of the Red Cross and the UN Office for the Coordination of Humanitarian Affairs. The financial assistance will help in emergency food and medical assistance, temporary shelter and employment, and restore access to electricity and potable water to Palestinians in Gaza. Obama's response comes after a 27 January letter sent to Secretary of State Clinton by 60 members of Congress, calling on the Obama administration to address the humanitarian crisis in Gaza. The United Nations launched an emergency appeal for $613 million on Monday to help Palestinians suffering from Israel's onslaught on Gaza. UN Secretary-General Ban Ki-Moon said the appeal covers the requirements of the UN and other aid organisations for the next six to nine months. An appeal for longer-term needs will be addressed at a later date. The UN estimates at least 1,300 people were killed, 5,300 people wounded and 21,000 homes were damaged or completely destroyed.