(Adds Israeli envoy, Syrian ambassador, U.N. official) By Louis Charbonneau UNITED NATIONS, Jan 22 (Reuters) - Israeli and Palestinian envoys traded accusations of blame in the U.N. Security Council on Tuesday for the recent wave of violence in Gaza, which threatens to torpedo a fragile Middle East peace process. Israel said it shut all Gaza border crossings on Friday in response to Palestinian rocket attacks. On Tuesday, Israel resumed fuel supplies to Gaza's main power plant, offering limited respite from the blockade that plunged much of the Hamas-ruled territory into darkness and touched off international protests. Riyad Mansour, the permanent Palestinian observer to the United Nations, told a Security Council session requested by Arab states the situation was "absolutely untenable." "The Israeli policy of brinkmanship is creating a humanitarian catastrophe in the Gaza Strip, heightening fears and tensions, inciting, provoking and fueling the vicious and dreaded cycle of violence," he said. Israeli envoy Gilad Cohen rejected Mansour's accusation that Israel had provoked the violence and was acting in violation of international law. "It is the duty of all states to ensure the right to life and safety of its people, especially from vicious acts of violence and terrorism," Cohen told the council. But, he said, Israel would "ensure the humanitarian welfare" of Gaza. Libyan Ambassador Giadallah Ettalhi said Israel was trying to exterminate Gaza's Palestinians and urged the council to act. "It must adopt urgent measures to protect the civilian population in Gaza, protect them from attempts at genocide by the occupation authority," he said. His use of the word genocide got an angry response from Cohen: "It is highly insensitive to the survivors of genocide around the world ... for language to be used so cheaply." Syrian Ambassador Bashar Ja'afari accused Israel of provoking the Palestinian rocket attacks and said it was guilty of "war crimes against the unarmed Palestinian people." Cohen countered by accusing Syria of supporting terrorists. UNDERMINING ANNAPOLIS Behind the public debate, members of the 15-nation Security Council were considering a draft statement on Gaza circulated by Libya, the council's president for January. The text, seen by Reuters, expresses "deep concern" about the situation and calls on Israel to allow humanitarian aid into Gaza, but makes no mention of the rocket attacks against Israel. U.S. and other Western ambassadors said the text would have to be revised to make it more balanced. U.N. undersecretary-general for political affairs, Lynn Pascoe, said the violence had abated, but he warned council members that the humanitarian situation remained fragile for Gaza's 1.5 million people, most of whom rely on foreign aid. "The events of the past week have underlined the ever present potential for the Annapolis process to be undermined," he said, referring to Middle East peace talks held in November at Annapolis, Maryland. In the occupied West Bank, Palestinian President Mahmoud Abbas said he would press ahead with peace talks with Israel but "continue in our efforts to see this siege fully lifted." Israel has imposed strict curbs on non-humanitarian supplies to Gaza since it was taken over by the Palestinian militant group Hamas in June 2007. U.S. Ambassador Zalmay Khalilzad said the rocket attacks against Israel had to stop and urged Israel to do everything in its power to avoid killing civilians. He made it clear that Washington held Hamas responsible for the situation in Gaza. "If Hamas cared more about the well-being and future of Gazans than it did about its own political agenda it would put an end to the ongoing rocket attacks," he said. British Ambassador John Sawers said Britain understood Israel's need to defend itself against attacks but said it should not punish all of Gaza and should reopen the crossings. (Editing by Mohammad Zargham)
A Palestinian holds candles in front of the Church of the Nativity during a demonstration in the West Bank town of Bethlehem against Israel's blockade of Gaza January 22, 2008. Israel ...