The Syrian president, Bashar al-Assad, has blamed foreign conspirators and satellite television channels for two weeks of widespread unrest that has challenged his regime, but in a highly anticipated speech he offered none of the reforms that protesters had hoped for.

The address to the Syrian parliament, which was seen as the most critical of his 11 years as president, left observers bemused and is unlikely to placate protesters who have taken to the streets across the country demanding democratic freedoms and more accountability from the government.

Assad said "conspirators" were pushing an "Israeli agenda", but offered no further details. "There is chaos in the country under the pretext of reform," he said.

He said changes to governance in Syria could be considered, but only after the country became more stable and economic conditions improved. However, he offered no timeframe for change, or specific details about what his government would offer.

"We tell those asking for reform that we were late in implementing it but we will start now. Priorities are stability and improving economic conditions," he said.

Assad had been widely expected to revoke a four-decade-old emergency law, which was put in place by his father and used by security forces to crush dissent ever since. He was also thought to be preparing to lift restraints on the media, which are largely government-controlled.

On Wednesday morning the al-Watan newspaper, which is close to the regime, predicted Assad would "reassure all Syrians and draw clear features for the coming phase".

But instead he criticised "satellite channels, propaganda and a sectarian divide", which he said had contributed greatly to the unrest that has reverberated through the country.

Assad did acknowledge that "mistakes" had been made in the southern city of Deraa where security forces have been accused of shooting dead more than 100 unarmed demonstrators. "Not all the demonstrators are conspirators," he said.

The speech was interrupted regularly by members of Syria's national parliament and was well-received in his constituency.

But in homes and cafes around Damascus, reactions among ordinary Syrians watching the speech were overwhelmingly negative.

"This is the end of Syria," said one young engineer. "There was no apology and no promise of reform. This only makes us angrier. He could have at least apologised for the deaths.

"The speech was nonsense and has given security forces the green light to continue its oppression on our people," said one man speaking by telephone from the city. "Assad is using fear of sectarianism as a tool to incite Syrians' anger against the people here," he added.

Even supporters of Assad may be at a loss after the speech. "Many Ba'athists were congratulating me today on the removal of the emergency law," said one Christian businessman. "But now they are empty handed as they face the Syrian people."

Analysts said Assad had been strengthened by messages of support from other countries in recent days. "This allowed him to make very few concessions," said one analyst who asked not to be named. "Reform was placed within the context of ongoing plans, meaning he can downplay the idea that he is reacting to discontent whilst at the same time saying it doesn't exist."

Activists in Damascus said the speech would add weight to calls for further protests across the country on Friday.

Katherine Marsh is a pseudonym for a journalist who lives in Damascus