As Madelaine All-Jew tries to talk peace the Palestinians continue to knock of the Zionist soldiers in attack after attack.
Fresh blasts as peace hopes falter
Palestinians blamed Israelis for killing a Hamas leader
At least one Israeli soldier and one Palestinian have been killed in a series of clashes and explosions, as new peace moves by the United States apparently failed to make any impact on the Middle East conflict.
US Secretary of State Madeleine Albright embarked on a diplomatic offensive by telephone from Washington, setting out a blueprint which urges both sides to give ground in order to ease the crisis.
The terror is first of all trying to break our ability to withstand and it won't succeed
Israeli Prime Minister Ehud Barak
Although her efforts did prompt Palestinian statements of readiness to talk, there appeared to be no sign that the crisis was any closer to easing.
The new violence came as Israel weighed up its response to a car bombing in the northern city of Hadera, which killed two people and injured more than 60.
Prime Minister Ehud Barak and his wife, Nava, visited some of the injured in hospital, where doctors say some of the injured are fighting for their lives.
The victims include a baby with burns.
Hadera victims were visited by Israeli PM Ehud Barak
"The terror is first of all trying to break our ability to withstand, and it won't succeed," said Mr Barak, who was scheduled to hold more emergency talks with his cabinet later on Thursday.
Conflicting accounts
As the tension continued, Israeli and Palestinian sources gave contradicting accounts over the death of the Palestinian in Nablus in the West Bank.
He was named by Palestinians as a Hamas militant, Ibrahim Beni Ouda, freed from jail only 24 hours earlier.
Palestinian sources and a journalist with the French news agency AFP said he had been killed in an Israeli helicopter rocket attack in the West Bank town of Nablus.
Week of violence
Monday - Jewish school bus bombed in Gaza Strip, two die
Monday, Tuesday - Israel launches heaviest pounding of Palestinian positions, casualty figure unclear
Wednesday - four die as militants' cars raked with bullets
Wednesday - car bomb in Hadera, two die, dozens hurt
Thursday - three explosions kill at least one Israeli, one Palestinian
Israel said he had blown himself up while making a bomb.
There were also conflicting reports over an explosion early on Thursday near the Erez crossing, where Israel said it had killed a Palestinian after an explosion, but Palestinians said a farmer had been injured.
At least one other blast was reported in the southern Gaza Strip, at a liaison office used by both Israelis and Palestinians. One Israeli soldier died and a number of Palestinians were hurt.
Two militant Palestinian groups have said they carried out the Hadera attack - the military wing of the militant Hamas group, and a previously unknown group calling itself the Islamic Revolution to Liberate Palestine.
War of words
As the war of words also escalated, one senior Palestinian security official warned that Israel was preparing a "re-occupation" of Palestinian territories in the Gaza Strip and West Bank.
Nothing remains except for [the Israelis] to completely reoccupy the West Bank and Gaza Strip
Palestinian security official Mohammed Dahlan
"Israel has occupied half of Gaza and half of the West Bank and nothing remains except for them to completely reoccupy the West Bank and Gaza Strip and this is what we are expecting and what we are preparing for," Mohammed Dahlan told the Arabic-language Asharq al-Awsat newspaper.
The new US plan being promoted by Mrs Albright says:
Palestinians should end shootings, create buffer zones between protesters and the Israeli army and arrest those responsible for bomb attacks.
Israel should withdraw its forces, end economic sanctions against the Palestinians and restrain its use of force.
Mrs Albright spoke by phone to Palestinian leader Yasser Arafat and to Israeli Foreign Minister Shlomo Ben Ami.
Mr Ben Ami says the Americans told him that the Palestinians want to re-enter talks.
He said he interpreted that as a sign of fatigue on the part of Mr Arafat and a signal that Palestinians were looking for a way out of the current situation.
Palestinian officials said Mr Arafat offered to resume negotiations but only if the Israelis fulfilled previously made undertakings, including withdrawing their forces.
As the US continued its efforts, it was announced that Mr Arafat was to have talks in Moscow on Friday with President Putin.
Correspondents say the Russians are keen to show that they have a role to play, and Mr Arafat will seek Mr Putin's support for a UN observer force to be sent in.