Hamas arrested senior Fatah officials in Gaza on Friday, capping off one of the worst weeks of conflict between the two Palestinian factions.
Israeli prime minister resigns from his post, but vows to pursue a deal with Palestinians and Syrians.
Explosions and a Hamas-led crackdown on the rival Fatah Party has raised tensions to their highest levels since Hamas seized control of the Palestinian territory in 2007.
The latest stops in his Mideast tour included the rocket-besieged Israeli town of Sderot and the West Bank town of Ramallah.
The West Bank city of Jenin has been officially handed over to Palestinian control, but the Israeli army still goes in to arrest and assassinate militants.
One of the last cities remaining under the Israeli blockade hosts a rare showing of race cars – some of which predate the second intifada.
For Palestinians in areas of Jerusalem seized in the 1967 Arab-Israeli war, the attack reinforces their precarious status in-between their countrymen in the West Bank and Israel.