The Israeli-Palestinian conflict is undermining US interests in the Middle East, said top US general General David Petraeus on Tuesday, amid a diplomatic feud between Washington and Israel.

He told a senate hearing that Israeli-Palestinian tensions "present distinct challenges to our ability to advance our interests" in the region.

"The conflict foments anti-American sentiment, due to a perception of US favoritism for Israel," Petraeus said in written testimony to the Senate Armed Services Committee.

"Arab anger over the Palestinian question limits the strength and depth of US partnerships with governments and peoples" in the region "and weakens the legitimacy of moderate regimes in the Arab world," said the general, who oversees US forces in the Middle East and Central Asia.

He also said Al-Qaeda and other militant groups sought to "exploit" Arab anger over the issue and that the conflict "gives Iran influence in the Arab world" through its "clients" Hamas in the Palestinian terroritories and Hezbollah in Lebanon.

-AFP/NOW Lebanon