The Quartet of major powers mediating in the Middle East peace process has called on Arab states to honour aid pledges to the Palestinians.
The call was made after talks in London between the UN, US, EU and Russia.
US officials say only about a fifth of money promised by Arab nations in December has been paid.
The Quartet condemned recent violence, and called on Israel to end settlement activity and for Palestinians to "tackle terrorism".
The violence it condemned included Palestinian rockets attacks on Israeli towns, an attack on a Jewish seminary earlier this year, Palestinian civilian deaths in clashes in Gaza and a Palestinian attack on a fuel depot.
I do believe that the window for the two-state solution will not be forever open... you could argue that it has gotten narrower and narrower over time
The group welcomed "concrete steps by both sides", such as the removal of some Israeli roadblocks and Palestinian security improvements, but said "much more remained to be done", UN Secretary General Ban Ki-moon said at a news conference.
The Quartet expressed "deep concern" over the humanitarian situation in Gaza, calling for provision of essential services to the Strip "without obstruction".
Shortages of fuel and basic goods have created a stranglehold on the Gaza Strip's fragile economy since Israeli restrictions were imposed after Hamas seized control of the Strip last June and tightened in response to the firing of rockets into Israel.
Promised money
US Secretary of State Condoleezza Rice stressed that pledges made at the Paris conference were for the Palestinian people, not the US.
Tony Blair and Condoleezza Rice on the Middle East peace process
"Clearly when you make a pledge you ought to fulfil it," she said after the talks.
US officials say that of $717m promised by Arab League members, only $153m of Arab pledges have been delivered, all from three countries: Saudi Arabia, the UAE and Algeria.
Ms Rice is due to hold three-way talks with Palestinian Prime Minister Salam Fayyad and Israeli Foreign Minister Tzipi Livni.
Mr Fayyad said the political process could become meaningless if Israel continues to build settlements in the occupied West Bank.
"Israel has failed to meet any of its obligations under the roadmap which is extremely troubling, particularly as those obligations include a freeze on settlement activity," he said.
BBC diplomatic correspondent Bridget Kendall said there was a sense of urgency at the talks, with one official warning that the Palestinian Authority was in danger of financial collapse.
US sponsored peace talks launched between Israel and the Palestinian Authority - controlled by Hamas's rival Fatah - last year, aiming for a two-state solution by the end of 2008, have produced little tangible progress.
Grievances
En-route to London, Ms Rice warned that the "window for the two-state solution" would not be "forever open" and had become "narrower and narrower over time".
But she added: "I think it is far too early to start [having] any sense of despair about the end of the year."
Our correspondent says the modest ambition voiced by some for Friday's talks was to get Arab nations to produce more cash to keep the Palestinian Authority afloat.
And, she adds, overall the point of this high level gathering it seems was not to force any breakthrough, but simply to keep all sides engaged and make sure that the faltering peace process stays alive.
Ahead of the talks, British aid agencies warned that ordinary life in Gaza was becoming "intolerable".
"Only a trickle of medicine, food, fuel and other goods is being allowed in," warned a statement from agencies including Oxfam and Christian Aid.
"It has made people highly dependent on food aid, and brought the health system and basic services such as water and sanitation near to collapse."
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I do believe that the window for the two-state solution will not be forever open... you could argue that it has gotten narrower and narrower over time
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