Ankara, Turkey ? Newly launched peace talks between Syria and Israel face daunting odds, but a breakthrough could bring fundamental change to the Mideast by returning the Golan Heights to Syria, cutting off support for Hezbollah forces in Lebanon, and diminishing Iran’s regional influence.

After eight years of stalemate and tension, the two countries announced Wednesday that they had launched a bid to end one of the region’s longest-running disputes.

In similar statements issued from Damascus and Jerusalem, the rival neighbors officially declared that they are taking part in indirect negotiations with Turkish diplomats serving as mediators.

“The two sides stated their intention to conduct these talks in good faith and with an open mind,” according to a statement issued by Israeli Prime Minister Ehud Olmert and the Syrian foreign ministry. “They decided to pursue the dialogue between them in a serious and continuous way, in order to achieve the goal of comprehensive peace.”

It could also give Syrian President Bashar Assad a critical success to consolidate his power and point his country in a new direction.

“I think it’s the biggest game in the region,” said Paul Salem, director of the Carnegie Endowment for International Peace’s Middle East Center in Beirut, Lebanon.

Negotiations between two nations that have officially been at war for 60 years face significant hurdles on a long road that could lead nowhere.

Assistant Secretary of State David Welch told reporters on Wednesday that the Bush administration remains skeptical of Syria because it continues to back Hezbollah, allows top Hamas leaders to operate openly in Damascus and retains close ties to Iran.

“That said, Israel lives in a difficult neighborhood,” said Welch. “It’s in its national interest to find ways to expand the circle of peace if other people are serious about doing it, and I see that they’re undertaking that experiment now.”

The news was met with deep skepticism in Israel, where Olmert’s political future is in jeopardy because of a deepening political corruption investigation that could bring down his fragile coalition government before he can ever approve direct talks with Syria.

Israel and Syria announced the new peace initiative hours before an Israeli judge eased a gag order and allowed Israeli journalists to report more details of the Olmert investigation.