The US Secretary of State Colin Powell said today he still hopes to meet Palestinian leaders next week despite the bombing of a Jerusalem university that drew swift military retaliation from Israel resulting in the deaths of three Palestinians.
Israel responded to the bombing by sending troops into the West Bank city of Nablus, demolishing houses of the families of Palestinian suicide attackers.
Powell condemned Palestinian attacks but said the sides "can't give up" efforts to end 22 months of bloodshed.
"We can't walk away from it. We must continue to try to find a path forward," Powell told a news conference in Manila near the end of an eight-nation Asia tour. He made clear no dates or participants had been set.
Tensions on the ground continued to rise as Israeli troops backed by tanks poured into the centre of Nablus, killing three Palestinians and seizing at least 30 suspects in what the army said was an effort to root out a "local terror network".
Soldiers went from house to house in the Casbah, or Old City, destroying walls between houses, as they searched for militants.
The army also demolished the houses of families of militants and started to deport their relatives.
Bulldozers and army engineers razed four homes in three West Bank towns, at least three of which belonged to relatives of suicide attackers.
Palestinian President Yasser Arafat condemned as a crime against humanity the demolitions that left dozens homeless.
"I am asking for quick international intervention from the United Nations. If they are not able to send forces, they should send observers," Arafat said in the West Bank city of Ramallah. Senior Palestinian negotiator Saeb Erekat said last week he expected to visit Washington for talks on August 5 and 6 with Abdel Razzak al Yahya, the new interior minister also in charge of Palestinian security forces, and Trade Minister Maher al-Masri.
The meeting would be the most senior contact between the US administration and Palestinian Authority since President George W. Bush called in June for Yasser Arafat to be sidelined as Palestinian leader.