Obama: Egypt neither ally nor enemy

>>> secretary of state hillary clinton used strong language to denounce the film, words like disgusti disgusting. but what actions does the u.s. have to stop the anti-american rage? our chief correspondent andrea mitchell with us from our washington bureau, good evening.

>> reporter: good evening, tonight, the administration is scrambling to deal with the outrage over the video, and looking at egypt 's new leader. in colorado, president obama signalled his resolve to find the killers of the four americans.

>> i want people to hear me from all over who would do us harm, no act of terror will go unpunished.

>> reporter: but america's ally allies, dictators, are gone, and the u.s. is not happy with mohamed morsi's initial failure to protect the embassy. so last night, mr. obama seemed to be lowering egypt 's status.

>> i don't think we would consider them an ally, but we don't consider them a new enemy. they are a new government trying to find its way.

>> reporter: later, president obama called morsi, saying he needed to protect the embassy. today, he said they did not intend to down grade egypt , which gets one and a half billion in aid, second only to the u.s. and afghanistan. but they no longer have a compass for the region.

>> it is difficult seeing these images on television, because our world is filled with challenges. this is a difficult time.

>> essentially the united states has made a bet, a big bet , a gamble. but there are not a lot of alternatives.

>> reporter: example nine years ago -- exactly nine years ago today, it seemed so normal, when a new life was promised. the president and the secretary of state insists the u.s. had no connection to the anti-muslim video.

>> it appears to have a deeply cynical purpose, to denigrate a great religion and to provoke range.

>> reporter: while the president said they didn't intend to down grade them as an ally, his comments reflect his frustration at his lack of diplomatic options. today, the president called to thank them for protecting the embassy there, clearly in contrast.