The Pew Research Center poll, released Thursday, said 61 percent of Israelis questioned expressed confidence that Obama would do the right thing when making world affairs decisions.
Only 15 percent of Palestinians said they felt the same way, the poll indicated.
Half of Israeli respondents also said that an independent Palestinian state could exist within their own country, while Palestinians overwhelmingly said they don't believe that is possible.
Both Palestinians and Israelis said they want Obama to become more involved in the Middle East peace process.
Among Israelis, 49 percent of respondents indicated that they want to see greater U.S. presidential involvement, 29 percent chose the same level and 15 percent said they would like to see Obama become less involved.
Among Palestinians, 41 percent wanted greater involvement, 19 percent the same level and 26 percent wanted less.
The survey of 922 Israelis was carried out in face-to-face interviews and had a margin of error of 4.6 percentage points.
The face-to-face polling of 810 Palestinians had a margin of error of 4.4 percentage points.