Annan, Powell criticize Israelis, Palestinians

Powell said Israelis and Palestinians both need to rethink their policies.

WASHINGTON (CNN) -- U.N. Secretary-General Kofi Annan and U.S. Secretary of State Colin Powell both had sharp words for Israel and the Palestinians on Wednesday, saying neither side was doing enough to stop the violence that has escalated in recent days.

The "situation has clearly got completely out of hand and the risks are great," Annan said.

Powell urged Israeli Prime Minister Ariel Sharon to take a "hard look" at his policies to see whether they will work, saying Sharon is currently pursuing a path "that will just lead to more violence."

U.S. officials told CNN the Bush administration believes Sharon's strategy is doomed to fail because there is a potentially unlimited supply of Palestinian suicide bombers.

Annan was described as "appalled" by the rising death toll and rhetoric. Annan urged leaders on both sides to be responsible leaders.

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The latest violent upsurge in the Mideast began late last week when Israeli forces moved into Palestinian refugee camps in what Israel called an attempt to "dismantle the terrorist infrastructure."

In his sharpest criticism to date, Annan said Israeli and Palestinian leaders have a responsibility to lead. He added: "History will judge them harshly and their people will not absolve them, if they fail."

Powell, appearing at a House hearing on the State Department budget in Washington, said Israelis and Palestinians both need to think through and review their policies.

Powell said Sharon "needs to take a hard look at his policies to see if they can work. .... I don't think that declaring war on the Palestinians will work."