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The UN Security Council expressed "grave concern" at the resumption of hostilities in Gaza between Israel and Palestinians and called upon the parties to resume negotiations to urgently reach a "sustainable and lasting ceasefire."
The 15-member Security Council also "called upon the parties to prevent the situation from escalating and to reach an immediate humanitarian ceasefire," said British UN Ambassador Mark Lyall Grant, president of the council for August.
US journalist James Foley is the first known western person to be murdered by Islamic State militants - but similar brutal methods of execution have been used on hundreds of people in Iraq.
The group's leader, Abu Bakr al-Baghdadi, was already on America's 'most wanted' list - and some have called him the next Osama Bin Laden.
ITV News diplomatic correspondent John Ray reports on the extremist leader, and the ruthless army he commands.
Warning: The following video contains some distressing images
The family of murdered journalist James Foley received an email from his captors last week which outlined their intention to execute him, GlobalPost's chief executive has confirmed.
Phil Balboni said the email was "full of rage against the United States for the bombing" of Islamic State targets.
"We communicated ... as quickly as we could with the captors and pleaded with them for mercy," he told reporters.
"[We] explained to them that Jim was an innocent journalist, had done no harm to the Syrian people ... Sadly they showed no mercy to Jim."
Foley was a freelance journalist working for the GlobalPost news site in Syria at the time of his capture in 2012.
The Israeli military has targetted a person who it claims was responsible for rocket barrages in the south of the country.
A short while, the IDF targeted a terrorist who was responsible for the rocket barrages at southern Israel earlier this evening.
They did not name the target or specify whether the mission was successful.
Airlines should stay away from Israel's Ben Gurion International Airport from Thursday, according to Hamas' military spokesperson.
Abu Ubaida also said the group would target Israeli public sites such as football stadiums and he cautioned Israelis living near to Gaza against returning to their homes.
Former US presidential candidate John McCain said the beheading of journalist James Foley should serve as a turning point for Barack Obama's deliberations on how to deal with Islamic State militants.
"I don't think there's any doubt that this horrible video on the internet is bound to have an impact on the American people," McCain told Reuters.
"The nature of the brutality of this organisation has been brought home by this."
The Republican senator called for a dramatic increase in air strikes against Islamic State targets in Iraq and suggested they should extend into Syria, saying, "We have to defeat them, not stop them."