Rice urges Hamas to recognise Israel

Asked at a media conference in the Saudi city of Jeddah what to do about violent clashes between the ruling Islamist Hamas movement and its rival Fatah, Rice said "the answer is for the Palestinians to find a government that can be committed to the Quartet principles."

"Innocent Palestinians are caught in this violence. I call on all parties to stop this violence," Rice said alongside her Saudi counterpart Foreign Minister Saud al-Faisal.

Ten Palestinians have been killed and over 100 wounded in two days of clashes in the West Bank and Gaza.

The so-called Quartet grouping of the United States, European Union, Russia and United Nations backs the Middle East roadmap for peace, which calls on the Palestinians to renounce violence, recognise Israel and agree to abide by past peace agreements for the aid to resume.

In exchange, the roadmap calls for a Palestinian state to exist in peace and security alongside Israel, which must in turn end illegal settlement activity in the occupied West Bank.

Hamas has so far refused to recognise Israel or previous agreements signed with Israel by the formerly ruling Fatah. Israel continues to build settlements on Palestinian land.

"The Palestinians need to have a government that can serve their needs," Rice said.

The worst violence in the territories since Hamas formed a government in late March erupted after Hamas tried to prevent Fatah loyalist protesting over non-payment of salaries, which they have not received since Hamas came to power.

The European Union and the United States, which along with Israel consider Hamas a terrorist organisation, cut all direct aid to the Palestinian government after the Islamists formed a government.