David Cameron has urged Israel to pursue a peace deal with Palestinians that could mean "an end of all conflict" in the Middle East.
Israel says it has has intercepted a "monstrous cargo" of weapons on a cargo ship heading to Gaza from Iran.
ITV News Correspondent Geraint Vincent explains why Israel's alleged attack at the Lebanese-Syria border may not create new conflict.
Labour leader Ed Miliband has condemned the expansion of Israeli settlements on the Palestinian West Bank and warned they pose a "mortal threat" to hopes of securing a two-state solution to the decades-old conflict.
Mr Miliband, who is an atheist of Jewish descent, said he was a supporter of "the homeland for the Jewish people" but has made clear he does not give blanket backing to the actions of the Israeli government.
The Labour leader made his strongest criticism yet during a visit to the Middle East, blasting the policy as "wrong and illegal."
The Labour leader said: "What I have seen today shows that the expansion of Israeli settlements on the Palestinian West Bank is not only wrong and illegal but represents a mortal threat to the two-state solution and to a successful outcome of the peace process."
He is on the last leg of a three-day visit and will stay overnight in Ramallah, in central West Bank, tonight - the first leading British politician to be able to do so as a result of improved security conditions.
Israel has cancelled its last release of Palestinian prisoners because of the Palestinians' push for recognition at the United States, Israel's chief negotiator said. Tzipiz Livni said the decision to seek accessions through the UN violated the terms set for the prisoners' release.
The impasses over the prisoners throws further doubts about the outcome of the US-led peace negotiations. The talks had been scheduled to last until the end of the month, but both sides appear to be wavering.
For the families of those Palestinians due for release, the decision brings fresh heartache as their hopes are dashed at the last minute. Middle East Correspondent Geraint Vincent reports.
US secretary of state John Kerry is heading back to the Middle East for talks with Israeli and Palestinian leaders as peace negotiations hit a critical make-or-break point.
The US state department said Mr Kerry will travel to Israel and the Palestinian territories amid a flurry of diplomatic activity by American mediators, in the hope of salvaging the troubled negotiations and getting them to extend the talks beyond a current late-April deadline.
Israel have launched air strikes against Syrian military sites near the town of Qunaitra in retaliation for a roadside bombing on Tuesday, that wounded four soldiers.
The bomb was detonated near an Israeli patrol along a fence between the Golan Heights and a section under Syrian control.
One of the four wounded soldiers was critically injured in the roadside bomb. In retaliation, the Israeli air strikes killed one and wounded seven others, Syria's armed forces said.
Israeli Prime Minister Benjamin Netanyahu told his cabinet "Our policy is clear. We hurt those who hurt us."
The Israel Defence Force said rockets have been fired on Israel from the Hamas-controlled Gaza Strip for the second day in a row:
UPDATE: The 3 #Gaza rockets that were fired several minutes ago hit the Sha'ar Hanegev Regional Council, raising the toll to 7 rockets today
David Cameron said he spent some of the day "hearing about Palestinian concerns over a cup of tea and falafel" with the Mayor of Bethlehem, Vera Baboun.
He met young Palestinian business people from east Jerusalem and spoke by video-link to three young women in the Gaza Strip, where he said the current situation was "unacceptable", to ask them about their hopes for the peace process.
The Prime Minister also took time out from his round of discussions to visit the site considered to be the birthplace of Jesus Christ, the Church of the Nativity.
David Cameron said both sides of the Israeli-Palestinian conflict will "have to take difficult and unpalatable and sometimes unpopular decisions for their constituencies" in order to achieve the peace settlement.
Speaking alongside Palestinian President Mahmoud Abbas after talks in Bethlehem, Mr Cameron said about the peace settlement: "I'm not saying it's definite or even probable, but it's certainly possible."
The Prime Minister also held brief talks with his Labour predecessor as premier, Tony Blair, who is now the special envoy of the Quartet of the UN, US, EU and Russia, working on the development of the Palestinian economy.
Former Prime Minister Tony Blair, who is now a special envoy in the Middle East, said economy is vital in the peace process.
"The economic side, which is absolutely vital because if we don't build the Palestinian economy up at the same time as you are pursuing the political negotiation then a state for the Palestinians seems a dream and not a reality," Mr Blair said.
David Cameron told ITV News Political Editor Tom Bradby he recognises Israel as "the homeland for the Jewish people."
"What we should do is recognise states," the Prime Minister said during his trip to the Middle East.
"It is then up to states to decide what to call themselves, that's the way it should work," Mr Cameron added.
David Cameron met the Middle East peace envoy Tony Blair at the British consulate in Jerusalem.
The two spoke for 20 minutes, discussing the peace process.
Asked whether missile attacks could knock the plan off track, Mr Blair said: "The strikes from Gaza just underline and illustrate the depth of the problem.