Israeli PM Ehud Olmert (L) meets with Egyptian President Hosni Mubarak in Sharm el-Sheikh, 4 Jan 2007

An Israeli raid into the West Bank Palestinian town of Ramallah has cast a shadow over an Israeli-Egyptian summit aimed at reviving Mideast peace talks.

Egyptian President Hosni Mubarak and Israeli Prime Minister Ehud Olmert spoke during a tense news conference after meeting Thursday in Egypt's Red Sea resort of Sharm el-Sheikh.

Mr. Mubarak criticized the Israeli raid, which killed four Palestinians and wounded 20 others.

Mr. Olmert said the incursion was aimed at protecting Israelis from terrorists.

In their meeting, the two leaders discussed efforts to free an Israeli soldier captured by Palestinian gunmen in June.

Israel is reported to be ready to release hundreds of Palestinian prisoners in exchange for the soldier. There was no announcement of a prisoner swap.

Egypt has been a key mediator in Israeli-Palestinian peace talks.

In Washington, the State Department said Secretary of State Condoleezza Rice is likely to travel to the Middle East soon. A spokesman said Ms. Rice sees a potential opening for Israeli-Palestinian peace.