MOSCOW, June 4 (RIA Novosti) - President Barack Obama called for a new beginning in relations between the United States and the Muslim world at a long-awaited speech in Egypt on Thursday.

In his speech at Cairo University, broadcast on Egyptian state television and worldwide, Obama touched on a wide range of Mideast issues, declaring support for Palestinian statehood, pledging to withdraw U.S. troops from Iraq, and condemning Iran's nuclear program.

"I have come here to seek a new beginning between the United States and Muslims around the world, one based upon mutual interest and mutual respect," Obama said in his opening remarks.

"I consider it part of my responsibility as president of the United States to fight against negative stereotypes of Islam wherever they appear."

On the Israeli-Palestinian conflict, he said Palestinians must be allowed to form a viable state.

"That is in Israel's interest, in Palestine's interest, and in the world's interest. That is why I will personally pursue this outcome... Israel's right to exist cannot be denied, but neither can Palestine's."

He called on Palestinian militants to abandon violence, but spoke out against Jewish settlement construction in the West Bank.

"The United States does not accept the legitimacy of Jewish settlement construction, which violates agreements and undermines peace," he said.

On Iraq, the U.S. leader highlighted the controversial circumstances surrounding the decision to invade the country, and gave assurances that: "We pursue no claim on its territory or resources" and will "remove all our troops from Iraq by 2012."

Obama spoke out against Iran's nuclear program, warning that nuclear weapons proliferation poses a threat to the security of all countries.

"When one nation pursues nuclear weapons, the risk of attacks rises for all nations," he said.