European Union foreign ministers are due to talk with senior Israeli and Palestinian officials, but British Foreign Secretary Mr Jack Straw played down hopes of any breakthrough.
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Israeli Foreign Minister Mr Shimon Peres and Palestinian International Co-operation Minister Mr Nabil Shaath will brief the 15 EU ministers in Brussels on the deteriorating situation in the Middle East.
"We are here to support a peace process but we cannot activate one without the support and involvement of those on the ground," Mr Straw said.
"It is a grim situation. It requires restraint from both sides, but in the real world in which we live whether people can exist in peace and security depends on decisions on the ground in the Middle East rather than here," he added.
The Palestinians and Arab states have urged the EU and the United States to force Israel to stop military strikes on Palestinian targets in retaliation for a wave of suicide bomb attacks.
French Foreign Minister Mr Hubert Vedrine called on Palestinian President Mr Yasser Arafat to do more to rein in militants but also urged greater support for Palestinian Authority’s chairman.
The EU has been critical of Israel's economic blockade of the Palestinian territories and of its policy of assassinating suspected terrorists. But diplomats say Britain and Germany would oppose taking a tougher line towards Israel.