Riyadhi, Saudi Arabia ? King Abdullah denounced the American military presence in Iraq on Wednesday as an “illegitimate foreign occupation” and called on the West to end its financial embargo against the Palestinians.

The Saudi monarch’s speech was a strongly worded lecture to Arab leaders that their divisions had helped fuel turmoil across the Middle East, and he urged them to show unity. But in opening the Arab summit, Abdullah also nodded to hardliners by criticizing the U.S. presence in Iraq.

“In beloved Iraq, blood is flowing between brothers, in the shadow of an illegitimate foreign occupation, and abhorrent sectarianism threatens a civil war,” said the king, whose country is a U.S. ally that quietly aided the 2003 U.S.-led invasion of Iraq.

U.S. allies at the summit are trying to win support from other Arab governments to promote an Arab peace initiative that Washington hopes could revive the peace process with Israel. Arab hard-liners fear Saudi Arabia, Egypt and Jordan will bow to U.S. pressure to water down the land-for-peace offer in an attempt to win Israeli acceptance.

“In wounded Palestine, the mighty people suffers from oppression and occupation,” Abdullah said. “It has become vital that the oppressive blockade imposed on the Palestinians end as soon as possible so the peace process will get to move in an atmosphere without oppression.”

The United States has so far rejected calls to end the financial embargo imposed on the Hamas-led Palestinian government formed after elections last year. Saudi Arabia and Arab states have called for an end to the sanctions after Hamas formed a new government last month that includes members of the moderate Fatah party.

Abdullah insisted that only when Arab leaders unite will they be able to prevent “foreign powers from drawing the region’s future.”

“The real blame should be directed at us, the leaders of the Arab nation,” he said. “Our constant disagreements and rejection of unity have made the Arab nation lose confidence in our sincerity and lose hope.”

The two-day summit plans to revive a 2002 initiative offering Israel peace with the Arab world if it withdraws from lands it seized in the 1967 Mideast war. Israel, which rejected the Arab peace initiative in 2002, now says it could accept it if it is amended.