* US warns Iran over arming Iraqis The US has called on Iran to stop arming militants in Iraq following the first bilateral public talks between the two countries in almost 30 years.

* Israel’s Labour Party in key vote Labour party members in Israel are voting in a leadership election that could determine the government’s fate and shape the future of politics.

* PM warns of ‘long-term conflict’ Israel needs to prepare for a lengthy campaign in Gaza to stop the Kassam fire, Prime Minister Ehud Olmert told the cabinet Sunday, hinting that neither internal Palestinian agreements nor an end to the rocket barrages would necessarily bring a halt to the IDF’s operations there.

* Palestinian leaders seek end to Lebanon refugee camp fighting Palestinian leaders on Monday sought to end a bloody standoff between the Lebanese army and Islamist militants holed up in a refugee camp which has been the battleground for Lebanon’s worst fighting since the civil war.

* ‘Hamas will be ready for us’ Explosive tunnels, snipers, road bombs, all will be waiting should IDF decide to enter Gaza, says Shin Bet chief Yuval Diskin.

* China’s stock market hits record Chinese shares have continued rising at a breakneck pace, pushing Shanghai’s main stock index through the 4,000 mark for the first time.

* Gay activists slam Russia over incidents at Moscow demo European gay and lesbian activists Monday urged the European Union to address human rights violations in Russia after being attacked during an unauthorized gay rally in Moscow, allegedly with the tacit support of the local police.

* U.S. jets violate Turkish airspace Two U.S. warplanes briefly violated Turkish airspace near Iraq last week, the military General Staff said on its Web site.

* Ministers push for ban on Jerusalem gay parade Ministerial committee wants Knesset to pass bill giving Jerusalem city council power to ban gay pride parade in city.

* Ultra-orthodox newspaper opens new front in Haredi war on computers An op-ed in the ultra-Orthodox newspaper Hamodia yesterday urged readers to avoid computers, which it called the devil in disguise.