* Palestinians ‘may declare state’ A senior Palestinian official has said the Palestinians ought to unilaterally declare a state if peace talks with Israel do not succeed.

* Olmert: Jerusalem Not Discussed; Abbas: It Was Is the future division of Jerusalem being negotiated and discussed between Israeli and PA negotiating teams, or isn’t it?

* Ahmadinejad: Israel filthy bacteria In yet another verbal attack against Israel, Iranian President Mahmoud Ahmadinejad called the Jewish state a “filthy bacteria”.

* Musharraf rules out resignation Pakistani President Pervez Musharraf says he has no plans to resign, despite a sweeping victory by the opposition in the country’s parliamentary elections.

* Netanyahu: Olmert planning to divide Jerusalem “Israel must not, under any circumstances, withdraw from Jerusalem and allow another terrorism base to be established in the heart of the country.”

* US envoy warns over Iraq pullout The US ambassador in Baghdad has cautioned of the dangers of over-hasty withdrawals of military forces in Iraq.

* US ship prepares for satellite shot A US warship is moving into position in the western Pacific in preparation to shoot down an out-of-control spy satellite.

* Saudi journalist lambasts Nasrallah In an unprecedented vitriolic attack on Hizbullah, a Saudi journalist on Wednesday called into question the Arab world’s approach to the organization’s chief.

* Oil prices retreat in Asia after closing above $100 a barrel Oil prices retreated Wednesday in Asia after closing above $100 a barrel for the first time overnight.

* Kadima officials call for national unity gov’t Key officials in the Kadima Party voiced support for a national unity government.