The peace campaigners are in a minority here the bulk of them are people wanting government to set up a welfare state ( not a realistic demand ). That though is a political issue to be dealt with by the elected government. if this was the US Obama would be involved because the president their is part of the legislative process in Israel the president does stays out of politics unless his help is requested by the PM such as in issues of international diplomacy but this is a domestic issue for Bibi to deal with and Peres to keep out of.
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Preliminary report: Shooting attack in East Jerusalem's Damascus Gate (Haaretz)
from the article: Why are we not hearing from President Peres?