The United States has warned of an increased threat of violence in the Middle-East as officials in Washington expressed deep pessimism over the current peace process.
"The US government has indications that there is a heightened threat of terrorist incidents in Israel, the West Bank and Gaza," the State Department said in a statement.
The department did not identify the source or nature of the "indications" but the warning was released as hopes plummeted for the completion of an Israeli-Palestinian peace accord before US President Bill Clinton leaves office on January 20.
Israeli and Palestinian negotiators have agreed to keep talking after an inconclusive overnight meeting, but U.S. president Mr Bill Clinton conceded the odds were stacked against a peace deal by the time he leaves office.
Palestinian officials close to the talks told Reutersthat negotiators would meet at 5 p.m. Irish time on Saturday at an undisclosed location.
After a lull in months of violence that has left more than 360 people dead, the Israeli army said on Friday its soldiers shot dead a Palestinian gunman in the divided West Bank city of Hebron after a grenade was thrown at them.
A witness at the scene told Reutersthat some Jewish settlers celebrated the killing and gave the soldiers sweets.
He said about 50 settlers emerged from a Jewish-owned property in the town as troops were dragging the body away.
Hospital sources said two other Palestinians were wounded in a confrontation between stone-throwing protesters and Israeli troops in the West Bank village of al-Khader near Bethlehem.
Following the latest round of talks between the two sides this week, the level of violence has lessened and the Israeli army has eased restrictions on Palestinian areas.
AFP & Reuters