Fatah funeral procession comes under fire in continued Palestinian violence.
Olmert, left, and Mubarak were due to discuss
“Things developed in a way that could not have been predicted in advance, if innocent people were hurt, this was not our intention,” he said.
The meeting had been called to discuss reviving Middle East peace talks and a possible Israeli-Palestinian prisoner swap.
Mahmoud Abbas, the Palestinian president, said the Ramallah raid “proved that the Israeli calls for peace and security are fake”.
Israel and the Palestinians agreed to a ceasefire in the Gaza Strip in late November, but military incursions have continued in the West Bank.
During the raid in Ramallah, bulldozers and armoured personnel carriers drove through the central Manara Square, clearing cars out of the way.
The army fired smoke grenades, and at one point, an Israeli helicopter opened fire, witnesses said.
After the Israeli military withdrew Palestinians gathered in the streets of Ramallah to demonstrate against the raid.
Al Jazeera’s David Chater said in Ramallah that the incursion was a routine operation for the Israelis.