* ‘Massive weapons cache found in Sinai’ Egyptian forces found a massive cache of arms in the Sinai peninsula.

* Bush: America will not allow Iran to develop a nuclear weapon U.S. President George W. Bush reiterated his pledge that the United States will not allow Iran to develop nuclear weapons.

* Pakistan ‘feared Indian attack’ Pakistan feared India was planning to launch a military strike at the height of tensions over the Mumbai attacks.

* Islamic Jihad prods Palestinian factions to avenge Hebron settler riots The Islamic Jihad on Saturday urged all Palestinian factions in the territories to immediately retaliate for the assaults on West Bank residents.

* Is an Israeli-Palestinian Confederation Feasible? With time running out on the U.S. George W. Bush administration and without a settlement of the Israeli-Palestinian dispute having been reached, the idea of a Palestinian-Israeli confederation is gradually replacing that of a two-state solution.

* IAEA chief says efforts to curb Iran nuke program ‘a failure’ Efforts by the international community to isolate Iran in hopes of curbing its nuclear weapons program have failed.

* NATO-Russia deal shows EU influence NATO’s move to resume talks with Russia shows the increasingly key role the European Union is taking in setting the West’s agenda with Moscow.

* World Bank: Gaza banks may collapse The World Bank and the International Monetary Fund on Saturday warned that Gaza’s severe cash shortage may cause local banks to collapse.

* Russian ship enters Panama Canal A Russian warship has entered the Panama Canal for the first time since World War II.

* Assault on southern Israel continues At least one rocket landed in the Ashkelon area Saturday evening, following a day of continuing attacks on southern communities.