* Army Radio: Gov’t confirms Israel, PA to draft peace proposal Israeli and Palestinian negotiators have agreed to start drafting elements of a proposed peace accord.

* Iraqi PM begins talks in Tehran Iraqi Prime Minister Nouri Maliki has arrived in Iran for talks aimed at improving relations between the two neighbouring countries.

* ‘Next gov’t won’t recognize document’ News that Israel and the Palestinian Authority are planning to begin drafting elements of a future peace accord were ill received by the government’s political opponents.

* Russia criticises US over economy Russia’s new president has used his first major speech since taking power in May to blame the United States for the global financial downturn.

* US: Bush committed to diplomacy on Iran Hours after Transportation Minister Shaul Mofaz was quoted as saying that Iran would be attacked if it continued work on its nuclear program.

* Arab states leery of Israel’s entry into Mediterranean Union Mediterranean countries due to launch a regional union next month have yet to agree an overall vision for the project and questions remain over Israel’s role.

* McCain: US embassy should be in J’lem Republican presidential candidate Sen. John McCain used the status of Jerusalem to attack his Democratic rival, Sen. Barack Obama.

* Oil hike sparks ‘serious concern’ The US and the four largest economies in Asia are to voice “serious concerns” over “unprecedented” oil prices.

* Sarkozy in Lebanon to show support French President Nicolas Sarkozy pledged strong support for Lebanon’s new president and the country’s peace efforts.

* Latest Irish poll shows EU treaty heading for defeat The latest poll in Ireland has revealed a shock swing to the “no” side ahead of next week’s vote on the EU’s Lisbon treaty.