Events developed really quickly this evening in Davos. Turkish PM's wife said Israeli president lied in Davos and she bursted into tears. “Everything (Israeli President Simon) Peres said was lie,” Emine Erdogan told reporters in Davos after she burst into tears.

Then, according to AFP, Peres called and apologized to Erdogan.

"Israeli President Shimon Peres apologised by telephone to Turkish Prime Minister Recep Tayyip Erdogan Thursday after the latter stormed out of a Davos debate, the Anatolia news agency reported.

"Peres spoke to Erdogan for five minutes and apologised, the news agency said, citing a source close to the Turkish premier."

In a press with Erdogan the organizer and founder of Davos Forum Schwab said "What is more important is I have to pay tribute his role in the Middle East peace process. This role gives us hope. I am very sorry and deeply concerned."

Erdogan said the following.

"In the panel in the evening Ban ki-Moon spoke fore 15 minutes, I spoke for 12 minutes and Mr. Amr Moussa cut his speech short when it reached to 12 minutes.

"On the other hand President Peres spoke for 25 minutes and during the speech he turned and speak at me at a manner that we don't see in Davos. And president Peres raised his voice time to time.

"When I intervened to take the floor the moderator did not allow me to do. And I showed reaction to the moderator and left the meeting. I wanted to express these thoughts so that there would be no misunderstanding. We will talk about this with Mr. Schwab. My reaction here was towards the moderator. Such moderation will cast a shadow over peace efforts.

"I have respect for Mr. Peres therefore I did not raise my voice. Otherwise I would have raised my voice. He doesn't speak truth. History and political science deny him."

The President of Israel Shimon Peres will hold a press conference on Friday to address the incident. However, as we mentioned above he has already called and apologized to Erdogan. He had said that he raised his voice not because he was angry, but to be heard.

Israeli Turkish Realtions Unlikely To Be Hurt

Turkish based Hurriyet writes that "the impacts of Turkish Prime Minister's reaction to leave the stage during the Gaza session in Davos with Israeli president are unlikely to be seen directly but it is expected to have indirect effects.

"Erdogan's reaction unlikely to have direct impact on Turkey-Israel ties. Tayyip Erdogan's reaction sent shockwaves in the Turkish foreign ministry. But it is unlikely Turkey to reduce the level of diplomatic relations such as recalling the ambassador in Tel Aviv, diplomatic sources said."