Al Arabiya reports that he will not run in the upcoming election, but will remain in office until his term ends in September. Is that good enough for the demonstrators? Doubtful. Oil prices took a big dip on word of the speech. Meanwhile, President Obama sent retired ambassador Frank Wisner to Cairo to speak with Mubarak about how to best prepare for an "orderly transition." Seems like the U.S. is entering some dangerous terrain.
*Update: From the NYT:
President Obama has told the embattled president of Egypt, Hosni Mubarak, that he should not run for another term in elections in the fall, effectively withdrawing American support for its closest Arab ally, according to American diplomats in Cairo and Washington.
It was not clear whether the administration favors Mr. Mubarak turning over the reins to a transitional government, composed of leaders of the opposition movement perhaps under the leadership of Mohamed ElBaradei, or a caretaker government led by members of the existing regime, including the newly-appointed vice president, Omar Suleiman.