If I were Morsi, I'd withdraw the letter too. This is what got Anwar Sadat killed -- saying nice things about the Israelis.

Haaretz:

The spokesman for Egyptian president Mohammed Morsi on Tuesday denied reports that Morsi has sent a letter to Israeli president Shimon Peres.

"Everything that was reported in the Israeli media regarding the letter does not correspond to reality," said Yasser Ali in a statement.

The denial by the Egyptian president's spokesman is especially odd in light of the fact that diplomats in the Egyptian embassy in Tel Aviv were the ones who passed on the missive, which was printed on the official letterhead of the ambassador along with the embassy's stamps.

Moreover, senior Egyptian officials in Cairo notified the Israeli embassy in Cairo about the missive.

The letter, which was written in English and dated July 15, came as a response to a message sent by Peres a month ago, in which the president congratulated Morsi for his victory in the elections, and offered his blessing ahead of the month of Ramadan.

In response, Morsi thanked Peres on his "congratulations on the advent of the Holy Month of Ramadan."

"I am looking forward to exerting our best efforts to get the Middle East peace process back to its right track in order to achieve security and stability for all peoples of the region, including [the] Israeli people," Morsi said in the missive.

I think this is a clear indication of who exactly is running Egypt -- or at least the president. It would not be surprising if the Muslim Brotherhood leadership cracked down on Morsi for getting out in front of them when it comes to what is to be done about the peace treaty. So all his protestations to the contrary mean nothing. Morsi is still taking orders from the Brotherhood despite resigning from the organization.

This should chill whatever thaw was underway before the letter was, for all intents and purposes, withdrawn.