In the West Bank, Palestinian gunmen shot and killed an Israeli settler at the settlement of Ariel. In the southern Gaza Strip, Israeli troops wounded more than 20 Palestinians in a gunbattle near the Rafah refugee camp.
Witnesses say Israeli tanks fired shells during the clash.
The Israeli army says its troops had come under fire from Palestinian gunmen who also shot four anti-tank grenades. Palestinians say Israeli forces made unprovoked armed incursions into several Palestinian-controlled areas of the Gaza Strip. Israeli officials deny such incursions and say Israeli forces were protecting laborers working on border fences. Earlier Wednesday, Mr. Bush phoned Palestinian leader Yasser Arafat then Mr. Sharon and and urged them to end to the violence. A U.S. official says both leaders agreed to work with the United States on developing a way to implement the peacemaking recommendations of the Mitchell Commission.