Yemeni men shout slogans as they celebrate the resignation of Egyptian President Hosni Mubarak in Sanaa Feb 11, 2011. A furious wave of protest finally swept Mubarak from power on Friday after 30 years of one-man rule, sparking jubilation on the streets and sending a warning to autocrats across the Arab world and beyond. The banner reads: "Congratulations for the Arab nation. Mubarak has fallen". [Photo/Agencies]

Region, world watch closely

For days, the world had been watching closely the situation in Egypt and Mubarak's downfall unsettled some nerves, at least in Israel and the Middle East region.

After Mubarak's exit, President Barack Obama said: "The people of Egypt have spoken," while telling the Egyptian army that "nothing less than genuine democracy" would satisfy people's hunger for change.

He also acknowledged: "This is not the end of Egypt's transition. It's a beginning. I'm sure there will be difficult days ahead, and many questions remain unanswered."

David Pollock, senior fellow at the Washington Institute, said the key question now was what it meant that Egypt's military was taking over. The situation remained unclear, and the United States would need to deal with new partners in Egypt to promote both democracy and a common strategy in the region.

"One of the most important things to watch is how the Egyptian public reacts," Pollock said.

The change of regime in Egypt has Israel worried that their 1979 peace treaty could be in danger. It quickly demanded Friday that post-Mubarak Egypt continue to adhere to it.

Israeli analysts termed Mubarak's dramatic resignation as the beginning of a "different world" in the region, arguing it might force Israel to change its regional policies.

"It's over, Egypt is no longer a super power," said Zvi Mazel, Israel's former ambassador to Cairo. "Egypt has completely lost its status in the area, while Turkey and Iran are on the way up. It's a different world," the former ambassador told local news service Ynet.

Other neighbors in the region are also wondering whether popular upheaval will spread.

Lebanon's Hezbollah congratulated Egyptians on their "historic victory", as gunfire and fireworks lit up the night skies over Beirut.

In Yemen, thousands took to the streets celebrating the change of regime in Egypt and demanding reforms in their own country.