Tensions are running high among Palestinians
Israeli Apache helicopters have destroyed a police station in the West Bank town of Tulkarm and tanks have shelled Palestinian police checkpoints near Ramallah.
The BBC correspondent in Jerusalem says the weekend's violence - in which 11 people died - has reduced the prospect of high level talks about a possible ceasefire.
US criticised
Egypt and Jordan have accused the US of failing to curb the escalating violence between the Palestinians and Israelis.
Egyptian President Hosni Mubarak warned that if the US continued to hold back, security in the whole region would be jeopardised.
"The situation requires America take a stand. If the Americans hesitate, it is dangerous for the region, for our interests and even for the Israeli people," he said.
Both Egypt and Jordan have peace agreements with Israel.
US President George W Bush made clear on Friday that he believed the burden for starting the peace process in the region lay with Palestinian leader Yasser Arafat.
"If the Palestinians are interested in a dialogue, then I would strongly urge Mr Arafat to put 100 percent effort into stopping the terrorist activity, and I believe he can do a better job of doing that," he said.
Political leaders in Jordan say the remarks constituted an "encouragement" to Israeli Prime Minister Ariel Sharon to "pursue the escalation" of violence.
"We fear that the American president's declarations throw responsibility for the violence on the Palestinians," said Jordan's Information Minister Salih Kallab in a statement.
Israeli retaliation
In retaliation for two Palestinian attacks on Saturday, including a raid on a military post that killed three soldiers, Israel launched a series of attacks on Palestinian security targets.
F-16 fighter jets destroyed targets in three towns in Gaza and the West Bank.
Israeli tanks and bulldozers also penetrated into the Palestinian-ruled areas of Rafah, destroying three security posts including the main command headquarters.
The air raids were followed up by further Israeli shelling of Palestinian security targets on Sunday.
A 14-year-old Palestinian boy was the youngest victim of the weekend's violence, killed in the north of the Gaza Strip when he was hit by Israeli tank fire, Palestinian officials said.
On Sunday, an Israeli driver was shot and killed by a Palestinian gunman just across the line from the West Bank.
The BBC's James Reynolds says military action is speaking louder than diplomacy and sources say that a possible meeting between Yasser Arafat and Israeli Foreign Minister Shimon Peres is now looking increasingly unlikely.