Palestinian president Mr Yasser Arafat called on the United States to do more to promote Middle East peace after President George W Bush harshly criticised the Palestinian president and suspended a ceasefire mission.
In fresh violence, Israeli troops killed a Palestinian member of the militant Islamic group Hamas at a West Bank army checkpoint and fired surface-to-surface missiles at the eastern Gaza Strip.
UN Secretary-General Kofi Annan, speaking of efforts to halt the violence between Israel and the Palestinians and Israel, declared that: "For the moment it looks hopeless, but we must not give up hope".
Mr Annan, currently visiting Iran, said that collective international action was needed to persuade all parties to return to the negotiating table.
Mr Arafat said in an interview with Reutersthat the United States should be doing more to promote Middle East peace.
He declined to comment directly on Mr Bush's remark that he was very disappointed with the Palestinian president's efforts to end 16 months of conflict with Israel.
But, asked whether Mr Bush should do more to bring peace to the region, Mr Arafat said: "No doubt. I have said to him that I started the peace process with his father, President Bush... I told him that I hope we will continue what was started", he said at his Ramallah office where Israel has confined him since December after a wave of Palestinian suicide bombings.
Mr Bush discussed options with his foreign policy aides yesterday on punitive measures against the Palestinian Authority and suspended a visit to the region by peace envoy Gen Anthony Zinni.