Israel is coming under intense international pressure to resume ceasefire talks with the Palestinians which were postponed on Sunday.
Israeli radio reported that US Secretary of State Colin Powell had phoned Israeli Foreign Minister Shimon Peres to say the talks should go ahead as a matter of urgency.
French Foreign Minister Hubert Vedrine has also been meeting Mr Peres.
Israeli Prime Minister Ariel Sharon earlier stopped the talks, saying Israel would not negotiate with the Palestinians under fire.
The BBC's Caroline Hawley says Washington desperately wants to calm the conflict as it tries to enlist Arab and Muslim support for a coalition against terrorism.
Meanwhile, Palestinians have expressed anger at the issue of a warrant for the arrest of Marwan Barghouti, the head of Yasser Arafat's Fatah movement in the West Bank, by an Israeli court.
Mr Barghouti is wanted for allegedly heading paramilitary groups, according to Israeli public radio.
Palestinian officials say they were not officially told of the meeting's cancellation but still plan to attend, to force Mr Sharon to explain his minister's absence.
Palestinian International Co-operation Minister, Nabil Shaath, said Mr Sharon had looked for a pretext to destroy the talks, following pressure from his government's extreme right.
Mr Sharon still thinks he can equate Yasser Arafat with terrorism, he said.
