The cabinet has also summoned the Israeli ambassador in Cairo to provide answers on how an Israeli helicopter mistakenly killed the Egyptian border police while chasing armed men whom Israeli reportedly suspected of being involved in an attack earlier that day.
The increased diplomatic pressure on Egypt's neighbour came early on Saturday morning after Prime Minister Essam Sharaf led the cabinet in a special meeting, and hundreds of protesters lay siege to the Israeli embassy in Cairo.
Demonstrators arrived at the embassy in southwest Cairo on Friday afternoon and stayed into Saturday morning.
Protesters burned the Israeli flag, demanded that Israel's ambassador be expelled and that the Egyptian military do more to protect its border in the Sinai Peninsula.
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