Annan is expected to arrive today in Tel Aviv, Israel, after flying overnight from New York. He will meet with Israeli Prime Minister Ehud Barak and Palestinian Authority President Yasser Arafat as well as other regional leaders.
Determined to prevent further decay in relations between the Israelis and Palestinians, U.S. President Bill Clinton also has raised the possibility of a hastily assembled summit, perhaps as early as Wednesday in Egypt. Clinton proposed a gathering during a series of weekend telephone conferences with Arafat and Barak.
As Annan heads to Israel, the international community is mindful of a deadline laid down by Barak that is set to expire later today.
Barak has warned Arafat that if he does not restore calm among the Palestinian people, the prime minister is prepared to halt ongoing peace talks and direct the military "to go into a conflict."
Barak's deadline, viewed as an affront by Palestinian leaders, takes effect at sundown today, which marks the end of Yom Kippur, or Day of Atonement.
Rioting kills, injures scores
More than 80 people, mostly Palestinians, have died in clashes in Israel and Palestinian-occupied territories since September 28. As many as 2,000 others have suffered injuries.
Twelve days ago, Ariel Sharon, leader of the hard-line Likud opposition party, visited a shrine in Jerusalem considered holy to Jews and Muslims.
Outraged Palestinians say Sharon's visit sparked an escalation of violence. Israelis, however, say opportunistic Palestinians have used the visit as an excuse to battle with Israeli forces.
Mob fights in Nazareth
Fighting continued overnight. A 42-year-old Israeli Arab man died in the northern city of Nazareth during what police said were fights between Jewish settlers and Israeli Arabs.
Authorities said the rioting involved about 4,000 people, with each side throwing stones at the other. Police had to use tear gas to try to keep the mobs apart.
Earlier Sunday, the body of an American-born rabbi was found shot to death in a cave in the West Bank. Settler Hillel Lieberman had been missing since Saturday when he set out on foot for Joseph's Tomb, which was ransacked by a mob of Palestinians.
Jewish leaders in New York said the 37-year-old rabbi was the father of six and had immigrated to Israel 14 years ago.
Meanwhile, Israel shuttled hundreds of troops Sunday towards its northern frontier, where Palestinians in southern Lebanon threw stones across a fence at soldiers.
Red Cross works to free soldiers
Barak warned Sunday that he held Syria responsible for the capture of three sergeants who were grabbed by the pro-Iranian group Hezbollah during a diversionary skirmish Saturday near the Israeli-Lebanon border.
Barak's Cabinet is scheduled to hold a special session Monday night to discuss the three soldiers as well as the deadline placed on Arafat.
Syria, the main power broker in Lebanon, has supported Hezbollah in its self-proclaimed holy war against Israel's long occupation of southern Lebanon.
The International Red Cross is attempting to secure release of the soldiers.
On Sunday, Henri Fournier, the group's Beirut delegate, met separately with Lebanese Prime Minister Salim Hoss and Hezbollah liaison officer Wafiq Safa.
A Hezbollah statement said Fournier brought a message from Israel "dealing with the Israeli soldiers in the framework of beginning the negotiations for a prisoner swap."
Hezbollah, however, refused to allow Fournier access to the captives. They are demanding a prisoner swap, according to officials close to Sunday's discussions.
A foreign ministry spokeswoman said the issue would be discussed by European Union foreign ministers on Monday and that the EU would lead any European mediation effort.
Foes trade threats
Throughout the rising conflict, Palestinian and Israeli leaders have exchanged barbs and accusations, putting an additional strain on peace talks that have proved tenuous at best in recent months.
Barak was blunt with reporters Sunday.
"If in the next two days we do not see a complete change in patterns of behavior and cessation of violence we will consider that this is a deliberate act by the Palestinian Authority to stop (peace) negotiations, and we shall instruct the defense to act accordingly," he said.
Barak threatened to use the "full force of the military" if necessary.
Palestinian leaders were curt in their replies.
"I have the impression that according to him it is Palestine that occupies Israel and not Israel that occupies Palestine," Afif Safieh, Palestinian delegate to the United Kingdom, told CNN. "All the battles, confrontations are taking place around Palestinian urban centers. All Israel has to do is withdraw 300 meters (330 yards) so that there is no confrontation."
Palestinian security chief Mohammed Dahlan said Barak's remarks were insulting. After years of involvement in negotiations, he said his optimism for peace had waned.
The Palestinians said it was up to the Israelis to stop the shooting, and they laid down their own condition: Accept a U.N. Security Council call for an international commission to investigate the violence.
The Security Council late Saturday approved a resolution that condemned Israeli "acts of violence, especially the excessive use of force against Palestinians, resulting in injury and loss of human life."
CNN Jerusalem Bureau Chief Mike Hanna, CNN Senior International Correspondent Walter Rodgers,Kelly Wallace, The Associated Press & Reuters contributed to this report.