Updated 11 March 2002, 08.12

 Newsround's Matthew Price explains why things are so bad

The remains of Yasser Arafat's HQ

But Mr Sharon did have some good news for those who want peace.

He said he was probably willing to ease restrictions on the Palestinian leader Yasser Arafat, who, at the moment, is only allowed in the West Bank town of Ramallah.

Arafat headquarters destroyed

Mr Sharon had said he would lift the ban if the men who are suspected of killing top Israeli minister, Rehavam Zeevi, were arrested. This has now been done.

Key members of the Israeli and Palestinian leaderships are also due to meet on Monday for talks.

But this follows yet another weekend of violence in the Middle East.

Israeli missile destroyed the headquarters of Yasser Arafat in Gaza, and a Palestinian suicide bomber killed 11 people and injured 50 more in West Jerusalem.

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Matthew Price: why's the fighting so bad?

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