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WASHINGTON — President Obama urged the Israeli government to loosen its blockade of Gaza on Wednesday, as the United States continued to scramble to find a way out of the stalemate in the Middle East and address the outcry over Israel’s deadly raid on a Gaza-bound flotilla last week. Mr. Obama, meeting with the Palestinian president, Mahmoud Abbas, at the White House, also promised a $400 million aid package for the West Bank and Gaza, though only about $70 million represented a new commitment. White House officials said the money would be spent on housing, schools, efforts to provide access to drinking water and other health and infrastructure projects.
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