JERUSALEM - Marking the 60th anniversary of Israel's founding, U.S. President George W. Bush on Thursday criticized the deadly tactics of extremist groups and denounced anti-Semitism, especially by those who want to wipe the nation "off the map."

"We believe that religious liberty is fundamental to civilized society so we condemn anti-Semitism in all forms whether by those who openly question Israel's right to exist, or by others who quietly excuse them," Bush said.

In a speech to the Knesset, or parliament, Bush pledged that the United States has an unbreakable bond with Israel.

"Some people suggest that if the United States would just break ties with Israel, all our problems in the Middle East would go away," Bush said in his prepared address. "This is a tired argument that buys into the propaganda of our enemies, and America rejects it utterly. Israel's population may be just over 7 million. But when you confront terror and evil, you are 307 million strong, because America stands with you."

Bush's five-day Mideast journey, which also takes him to Saudi Arabia and Egypt, represents another effort to push Mideast peace talks forward as his time in office winds down.

Israeli Prime Minister Ehud Olmert, who spoke before Bush, said his nation is ready for peace and that he is working on the U.S. vision of an Israeli-Palestinian peace agreement.

Olmert said he is committed to carrying out Bush's vision of forming an independent Palestinian state next to Israel. And when a deal is reached, Olmert said the divided parliament and Israeli public will rally behind it.

"I am convinced: a peace agreement that will reflect the vision you presented to the world in June 2002, and that will be based on two states for two people, a Jewish state and a Palestinian state, living side by side in peace," Olmert said. "This agreement will be approved in the Knesset by a large majority and will be supported by the vast majority of the Israeli public."

The chamber reacted with silence and nervous laughter, then Bush began to laugh. Two hardline lawmakers walked out of the chamber in protest.

Bush, who got a standing ovation as he got to the podium, took special aim at Iran, saying the United States stands with Israel in opposing moves by Tehran to obtain nuclear weapons.