Italian Foreign Minister Massimo d'Alema met with Israeli Defence Minister Amir Peretz on Sunday (July 30), as U.S. Secretary of State Condoleezza Rice remained in Jerusalem working on a cease-fire deal. "I definitely express my sorrow for hurting civilians. I have to underline that this event is first and foremost a result of the fighting method that the Hizbollah has developed -- acting from within civilian centres and using the population as its defence wall," said Peretz ahead of his meeting with D'Alema in Jerusalem. Rice, who returned to the region on Saturday in a new push to bring the warring sides together, said she was "deeply saddened" by the Israeli bombing of the village of Qana in southern Lebanon, killing 40 civilians including 23 children. Rice said it was now time to reach a ceasefire in the war, but said that could not mean a return to the status quo before it broke out. The Qana strike was the bloodiest single attack during Israel's campaign to smash Hizbollah guerrillas. Prime Minister Ehud Olmert told his cabinet Israel's offensive in Lebanon would continue despite the bombing of the Lebanese village. Earlier Olmert was quoted as telling cabinet members that Qana was the launch site of Hizbollah missiles fired toward Israel, and that villagers had been warned in advance to evacuate the town.