Addressing the House of Lords, Bishop Peter Price said civil society was "key to unlocking peace" between Israel and Palestine.
"Peace is the prize that all must seek for the welfare of generations of children growing up against the backdrop of uncertainty and fear," he said.
Bishop Price made the visit as part of a delegation led by Christian Aid that also included the Bishop of Worcester.
He said the recent ceasefire between Israel and Gaza offered "hope for some measure of peace" and that US President Barack Obama's forthcoming visit could open up non-violent solutions.
What is hopeful is an increasing sense among the young that this situation cannot last forever," he said.
During his visit, Bishop Price met Palestinian children taking part in a post-conflict trauma group.
He was moved by their dreams to become doctors, lawyers and teachers when they grow up.
"What kind of humanity leaves behind a child - any child - unable to hold onto its future?" he said. "I am not seeking to make a partisan point here but a humanitarian one. Unless we can see in the eyes of the other the same human identity that is in ourselves, we risk only demonising the other."