"It's no secret that there is a difficult environment surrounding the talks, domestically and internationally," Espen Barth Eide told reporters after meeting President Nicos Anastasiades.
"This is a good time to call on all parties to do their utmost to reduce any kind of tension that can make the talks more problematic; that goes for people here, but also for people in the neighbourhood," he added.
Greek Cypriot leader Anastasiades and his Turkish Cypriot counterpart Mustafa Akinci are still far apart on core issues such as power sharing, territorial adjustments, security arrangements and property rights.
However, Eide said the leaders had made "tremendous progress" and "to see that go to waste because of an international crisis would be very sad for all of us".
Akinci and Anastasiades were scheduled to hold another round of peace talks today.
The two sides have been engaged in fragile peace talks since May 2015 that observers see as the best chance in years to reunify the island.
The eastern Mediterranean island has been divided since 1974 when Turkish troops invaded its northern third in response to an Athens-inspired coup seeking union with Greece.
After a failed peace referendum on a UN blueprint in 2004, the Cyprus Republic now headed by Anastasiades joined the EU as a divided country, while the TRNC remains recognised only by Turkey.
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