President Bush's hope for a peace agreement between Israel and the Palestinians before he leaves office may be stymied by Ehud Olmert's decision to resign in September as Israel's prime minister.

The prime minister has been the focus of a corruption probe alleging he took hundreds of thousands of dollars in cash from a Jewish American fundraiser. The prime minister's departure could set back the peace negotiations that have intensified since the Bush administration became more involved late last year.

The administration has hoped for a breakthrough agreement that would lead eventually to a two-state solution before President Bush leaves office in January. An agreement is doubtful with much depending on internal Israeli politics. A change in Washington could alter the process as well.

Palestinian leader Mahmoud Abbas has said he will work with the outgoing prime minister and his successor, but sensitive negotiations involve personalities as well as issues. They rely on personal trust developed over months or years.

Israel's political system would allow Mr. Olmert to continue as prime minister after the September elections if his successor could not form a new government. But even if he were to continue in the talks, it would have the Palestinians dealing with an Israeli leader who might have trouble selling an agreement to his own people if he is on the way out.

Cox News Service quoted Israeli columnist Maya Bengal: "Olmert faces a difficult problem should he actually try to implement far-reaching diplomatic moves: Chances are that he will be accorded neither public nor political legitimacy to do so."

Israeli elections will also figure prominently in future peace talks.

Among his possible successors are Foreign Minister Tzipi Livni, who is leading the Israeli negotiating team with the Palestinians. She has been described as a centrist. Another possibility is Shaul Mofaz, the transportation minister and former defense minister, said to be right-leaning and hawkish.

The Bush administration remains hopeful with Secretary of State Condoleezza Rice still planning a trip for more talks in August. But most experts are pessimistic.

A Mideast peace may prove elusive for yet another American administration.