"We must leave Gaza to the Gazans," he added, following the bloody weekend in which more than 27 Palestinians were killed.
"We left (the Strip) in order not to reenter, and any interference in the conflict on the part of the State of Israel would only cause damage and won't have any benefit," Peres said, hinting to reports on a large-scale operation planned by Israel in the Strip.
He added that Israel must maintain a low profile in the conflict.
"I hope that a solution is found which will lead to a ceasefire between the factions, but no one but the Palestinians can do it for them."
Addressing Iran, Peres said that "their leader is extreme, crazy and dangerous." He called on the world to "unite against Iran's attempts to create a nuclear bomb and impose severe economic sanctions against it."
Defense Minister Amir Peretz said during the cabinet meeting that "the defense establishment is following the incidents in the Gaza Strip. We are following them but are not involved."
Addressing the Palestinian tunnels used to smuggle weapons to Gaza, Peretz said, "We are exerting every effort to uncover more tunnels."
Meanwhile, in Gaza, Hamas and Fatah built a joint operations room in a bid to maintain the ceasefire declared by the two organizations Saturday with Egyptian mediation.
In spite of the truce agreement, violations of the deal and exchanges of fire between the parties continued Saturday night. A Fatah-affiliated national security officer was shot in the head, Fatah official Mohammad Dahlan's nephew and another officer were kidnapped, and mortar shells landed in the security headquarters compound, near Abbas' office in Gaza.