EU Middle East envoy Mr Miguel Angel Moratinos warned in an interview published today the region was headed for a "terminal situation".
"If we cannot overcome this crisis we will be entering a totally different scenario," Mr Moratinos told leading Spanish daily
El Pais
.
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"I am not necessarily [talking about open warfare]. I am talking about a period of enormous instability in the entire region," the Spaniard said.
Mr Moratinos said Palestinian President Mr Yasser Arafat was under pressure from all sides and should take decisive measures to help end the violence.
But he said Mr Arafat's margin for manoeuvring was now "very limited".