The leaders of the world's eight industrial powers issued a strong statement condemning Hezbollah militants but also urged Israel to exercise restraint in its military actions against Lebanon.
"The root cause of the problems in the region is the absence of a comprehensive Middle East peace," the statement said.
The statement added that it was critical for Israel to "be mindful of the strategic and humanitarian consequences of its actions." It called on Israel "to exercise utmost restraint" by seeking to avoid casualties among innocent civilians and damage to civilian infrastructure.
"Israel needs to refrain from unilateral acts that could prejudice a final settlement and agree to negotiate in good faith," according to the statement.
"It is a strong message with a clear political content," German Chancellor Angela Merkel told reporters.
The statement called for two captured Israeli soldiers to be freed, for the attacks on Israel by Hezbollah militants to stop and for Israel to end its military action. It also expressed support for the Lebanese government.
The crisis has dominated talks among President Bush and the other leaders attending the annual G-8 summit of major industrial countries. The Group of Eight is made up of the United States, Russia, Japan, Germany, Britain, France, Italy, and Canada.
French President Jacques Chirac said the G-8 leaders were calling for a cease-fire.
"It is evident that the G-8 is calling for a cease-fire, we have all said it," Chirac told reporters. "The entire G-8 has called for a cease-fire in Lebanon and Gaza."
Israeli warplanes began striking Lebanon after Hezbollah guerrillas crossed the border on Wednesday and captured two Israeli soldiers. The guerrillas struck back at Israeli cities, and on Sundayof rockets into the Israeli city of Haifa, dramatically escalating the conflict.
Mr. Bush and European leaders disagreed on who should be blamed for the violence, and those differences had to be overcome for the G-8 nations to issue a joint declaration.
Administration officials said President Bush is pleased with the outcome, calling it a powerful message. But they also acknowledge there's a tough diplomatic challenge aimed at stopping the fighting, reports CBS News correspondent Peter Maer.
While other G-8 leaders questioned whether Israel's response to the capture of its soldiers went too far, Mr. Bush has placed blame squarely on Hezbollah and its state sponsors, Iran and Syria, and has declined to press Israel for a cease-fire.
Mr. Bush described the escalation of violence as "a moment of clarification" that should show the world how Hezbollah is disrupting the peace process.
Earlier Sunday, Mr. Bush joined world leaders in urging Israel to showafter four days of steady bombing against its neighbor Lebanon.
"Our message to Israel is, look, defend yourself but as you do so be mindful of the consequences, so we've urged restraint," Mr. Bush said.