WASHINGTON (AFP)--U.S. Secretary of State Hillary Clinton on Thursday warned Syrian President Bashar al-Assad against the risk of sparking a regional war if he supplies long-range Scud missiles to Lebanon's Hezbollah.

"Transferring weapons to these terrorists - especially longer-range missiles - would pose a serious threat to the security of Israel," Clinton said in prepared remarks to a pro-Israel group.

"President Assad is making decisions that could mean war or peace for the region," she warned.

She also urged Arab states to do more to support the Israeli-Palestinian peace process.

"They should take specific steps that show Israelis, Palestinians and their own people that peace is possible and that there will be tangible benefits if it is achieved," Clinton said.

She urged Arabs to "do more" to support the Palestinian Authority budget and its two-year development plan, as well as allow Israel to open or re-open trade offices in their countries or fly its national airline over their territory.