Camp David, Md. ? President Bush accused Yasser Arafat of undercutting chances for peace in the Middle East and told Palestinians they need a new leader committed to fighting terror if they hope to stop the cycle of violence with Israel.

Three months after winning concessions that raised hopes for an end to Israeli-Palestinian bloodshed, Bush acknowledged Thursday that his campaign had stalled. He put the blame squarely on Arafat, referring to him as “the old order,” and offered no criticism of Israel.

Acknowledging frustration on another front, Bush also conceded he was unlikely to win a Security Council resolution on Iraq before he addressed the U.N. General Assembly on Tuesday. The administration is seeking a measure to clear the way for additional peacekeeping troops and money from other countries to finance Iraq’s reconstruction.

“Reconstruction funds are never easy to come by, even in cases where everybody is completely united,” said Bush’s national security adviser, Condoleezza Rice.

With Hurricane Isabel bearing down on Washington, Bush welcomed Jordan’s King Abdullah II for talks at the presidential retreat in Maryland’s Catoctin Mountains. “We’ll batten down the hatches,” Bush said. The leaders, in blue shirts and sport coats without ties, held a brief news conference before a day of talks.

The king planned to spend the night. Bush, who flew here late Wednesday, planned to remain at Camp David until Sunday.

The meeting renewed the president’s focus on the Mideast after weeks of bloodshed that derailed the drive for peace that he launched in June. Looking back at what he said had been “a moment of great hope,” Bush recalled the summit in Aqaba, Jordan, when Israeli Prime Minister Ariel Sharon promised to begin dismantling unauthorized Jewish outposts on the West Bank, and then-Palestinian Prime Minister Mahmoud Abbas condemned violence.

Abdullah shared Bush’s view of the peace process. “Unfortunately there is a lull at the moment,” the king said.