Tony Blair and George Bush have joined forces to tell Israel it must withdraw its soldiers and tanks from Palestinian towns and areas.
They were speaking after a special meeting in America to discuss the problems in the Middle East, and also said that the Palestinian leader Yasser Arafat must do more.
As well as urging Israel to begin withdrawing their forces "without delay", they told Mr Arafat he must get tough on terrorist networks.
But in the Middle East there was even more violence, with heavy fighting happening between Israeli and Palestinian troops in refugee camps across the West Bank.
Thick smoke is seen over Bethlehem
The fighting is thought to be really bad in a northern town called Jenin, where there are reports that lots of people have been killed.
There were added reports of more attacks in the biggest Palestinian city in the West Banl, Nablus.
Shots were even fired at Mr Arafat's compound in Ramallah, although Israel said it was only firing back after its soldiers had been shot at.