These things happen. When the Americans shoot up Brits by accident, Ambassadors aren't recalled. The Egyptians are just itching for an excuse to tear up agreements with Israel and go back to the days when they can take pot shots at Jews from across the fence. Recall the Israeli ambassador from Egypt. It is an Islamist country which will be controlled by the brotherhood shortly..
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Iraqi police fire tear gas as thousands of protests burst into Green Zone, storm Parliament (AP)
from the article: Israel must act quickly to end the crisis with Egypt