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.
Tony Blair said the British Government has a great opportunity in the Middle East, "because it is relatively trusted by both sides, which is quite rare in this situation."
Tony Blair is meeting in Jerusalem with senior trade delegation led by @uktrademinister to discuss Initiative for the Palestinian Economy
Speaking to David Cameron for 20 minutes in Jerusalem, the Quartet special envoy Tony Blair gave his backing to the Prime Minister's drive to boost economic links. He said the trade side is "absolutely vital."
"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.
Downing Street has posted an image of David Cameron talking to young people online from Gaza during his trip to the Middle East:
PM talking to young people in Gaza via Skype about their hopes for future and how UK support can help create jobs http://t.co/KRWxlPmzPE
David Cameron will set out further UK support to create business opportunities and jobs in the Palestinian territories as part of a Middle East peace push.
The Prime Minister has offered grants for 90 companies to enable them to target foreign investors and enter new markets.
Mr Cameron is meeting the Palestinian President Mahmoud Abbas later today to discuss the situation.
He will also offer further £1.5 million for skills training for 1,000 refugee women in Gaza.
The funding is part of the government’s Palestinian Market Development Programme.
David Cameron is meeting Palestinian president Mahmoud Abbas today on the second day of a trip to the Middle East designed to bolster efforts to rekindle the stalled peace process.
Mr Cameron will also hold talks with one of his predecessors, former Prime Minister Tony Blair, to discuss progress on peace talks. Mr Blair is the European peace envoy of "the Quartet" of the United Nations, the EU, the US and Russia.
They are expected to meet for 20 minutes in East Jerusalem to discuss Mr Blair's Palestinian economic initiative, which aims to promote growth in the West Bank and Gaza Strip.
The Prime Minister's appeal yesterday for Israelis and Palestinians to embrace a vision of lasting peace in the region was undermined by a barrage of more than 30 rockets fired from Hamas-controlled Gaza into the south of Israel.
Prime Minister David Cameron appealed to the Israeli parliament today to reach out to the Palestinians and find a solution that could end the conflict in the Middle East.
But rocket attacks on Israel launched from the Hamas-controlled Gaza Strip during Mr Cameron's visit shows there is much to do until a peace deal can be reached.
Warning: This video contains flash photography
The US State Department wrote on Twitter:
The statement came after the Israeli military said more than 30 rockets were fired into the country from the Hamas-controlled Gaza Strip in the heaviest barrage in two years.
It was an honour to meet President Peres tonight. We both condemned today's rocket attacks from Gaza on Israel. http://t.co/TyWAgDFHIv
Some of the faces in the Hall of Names at Yad Vashem. We must never forget the millions murdered in the Holocaust. http://t.co/W2PjghJKKS
Prime Minister David Cameron visited the Yad Vashem's Holocaust History Museum in Jerusalem where he rekindled the eternal flame in memory of victims of the tragedy.