Tensions have mounted between Israel and the Palestinians after the bodies of three Israeli teens were found in the West Bank more than two weeks after they went missing.
Hundreds of Israeli VIPs and international dignitaries attended a state memorial ceremony for the late Ariel Sharon on Monday.
An Israeli official said Israel hoped to find a diplomatic solution to the crisis as well and signaled Egypt was likely to play a key role in enforcing any truce.
The Israeli military is poised for an invasion near the Gaza border, with 75,000 reservists on standby. On Sunday, Israel vowed to expand its offensive and assassinate Hamas leaders.
On the heels of Gilad Shalit returning home after spending five years in a Hamas prison, a second Israeli prisoner swap was being negotiated on Tuesday, one that hits real close to home.
With former mayor Ed Koch saying he cannot vote to re-elect Obama unless the president changes his recent stands on Israel, Bloomberg was asked whether it was a litmus test for him as well.
While President Obama was meeting with Prime Minister Netanyahu in Washington, a protest was held at the Israeli consulate in Midtown Manhattan.