Palestinian factions ‘agree deal’ Rival Palestinian factions Hamas and Fatah say they have reached a deal to end violence in the Gaza Strip.

Blair pledges support for Abbas British Prime Minister Tony Blair on Monday praised Chairman Mahmoud Abbas’ call for new Palestinian elections.

EU to Israel: Stop violating int’l law The European Council called on Monday for Prime Minister Ehud Olmert and Palestinian President Mahmoud Abbas to meet in the near future.

Iran reformist regains influence Iran’s moderate former President Akbar Hashemi Rafsanjani has won election to Iran’s powerful clerical body, the Assembly of Experts.

PM: Israel hesitant on Syria due to US Prime Minister Ehud Olmert made it clear to the cabinet on Sunday that one reason Israel is not embracing recent overtures for negotiations from Syria is American opposition.

Report: Saudi study finds Iranian Shiite ‘state’ in Iraq According to Washington Times, report commissioned by Saudi government says Iran established Shiite ‘state within a state’ in Iraq.

Nuclear Pact Will Make India Client State Of US, Says Opposition The Indian parliament saw a spirited debate on the India-US civilian nuclear deal Monday.

Iran to replace dollar with euro The Iranian central bank is to convert the state’s foreign dollar assets into euros and use the euro for foreign transactions.

Report: Rise in European ‘Islamophobia’ Muslims across Europe are confronting a rise in “Islamophobia” ranging from violent attacks to discrimination in the job and housing markets.

US church splits over sexuality Two church congregations in the US have voted to break away from the Episcopal Church because of its decision three years ago to consecrate a gay bishop.