"Aren't the Israelis and the Palestinians both terrorising each other?" says Turner, who is vice-chairman of AOL Time Warner, which owns CNN, in an exclusive interview with the Guardian.

"The Palestinians are fighting with human suicide bombers, that's all they have. The Israelis ... they've got one of the most powerful military machines in the world. The Palestinians have nothing. So who are the terrorists? I would make a case that both sides are involved in terrorism."

His remarks were last night condemned by Ariel Sharon's government, which called them "stupid". Andrea Levin, director of the American pro-Israeli media watchdog Camera, said the comments were a "reprehensible" attempt to "blur the line between perpetrator and victim".

In his first British interview since the September 11 attacks, Mr Turner - who broke philanthropic records in 1997 when he donated $1bn to the UN - argues that poverty and desperation are the root cause of Palestinian suicide bombings.

But Daniel Seaman, a spokesman for the Israeli government, said: "My only advice to Ted Turner is if people assume you are stupid, it is just best to keep your mouth shut rather than open your mouth and confirm everyone in that view."

Mr Turner also admits that he was wrong to call the September 11 hijackers "brave" in a speech in Rhode Island that sparked outrage. "I made an unfortunate choice of words," he says, adding that his ownership of the Atlanta Braves baseball team meant the word was never far from his mind. "Look, I'm a very good thinker, but I sometimes grab the wrong word ... I mean, I don't type my speeches, then sit up there and read them off the teleprompter, you know. I wing it."

Mr Turner is moved to tears at one point in the interview by the "depressing" combination of conflicts like that in the Middle East and the state of the environment, which he says demands massive global attention - "or, you know ... it's goodbye".

A senior minister in Yasser Arafat's cabinet told the Guardian he welcomed Mr Turner's comments. Many Palestinians complain just as bitterly of a pro-Israeli bias in CNN's coverage - mocking it as the "Zionist News Network" - as Israel complains of a pro-Palestinian one.

"I feel it reflects a more consistent approach," said Ghassan Khatib, Mr Arafat's newly appointed labour minister and until recently director of the Jerusalem Media and Communications Centre, a Palestinian media monitoring unit.

"One of the problems in trying to reduce the violence has been the focus of so much international attention on Israeli rather than Palestinian civilian deaths, although four times as many Palestinians have been killed."