* Iran Supports Iraq Terror Secret details of the production of a new type of explosively formed penetrator, or EFP in military jargon, is being produced by Iran’s Islamic Revolution Guards Corps.

* Irish ‘no’ camp says Paris hiding plans for EU defence On the eve of Ireland’s referendum on the EU treaty, the Irish “no” camp has accused France of trying to hide its intentions to push for beefing up EU military.

* Bush warns Iran of ‘all options’ US President George W Bush says he wants to pursue diplomacy to deal with Iran’s controversial nuclear programme, but “all options are on the table”.

* Security cabinet nixes Gaza op for now The long-delayed decision whether to accept an Egyptian-brokered cease fire with Hamas or step up military operations against the Gaza Strip came before the security cabinet.

* Hamas: Gaza will become graveyard for IDF soldiers if raided “The current Israeli government is the weakest in the country’s history,” Hamas spokesman Mushir al-Masri said.

* ‘No chance of Iran attack by Israel, US’ Iranian Foreign Minister Manouchehr Mottaki on Wednesday rejected sanctions as an effective means to dissuade Teheran from pursuing its uranium enrichment program.

* Israel Museum Displays Ancient Book of Isaiah The oldest existing Book of the Bible is on display in the Israel’s Museum Shrine of the Book, through mid-August.

* Southern residents: Politicians are scared Gaza-region residents are infuriated over Wednesday’s cabinet meeting, which ended on an indecisive note.

* Irish govt hopes EU treaty win in close race The Irish government said it hoped voters would back the European Union’s reform treaty but the race was very close.

* Lift-off for Nasa space telescope A Nasa space telescope has launched successfully on a mission to explore the Universe with “gamma-ray glasses”.

* US and EU issue new Iran warning The EU and the US have threatened Iran with further sanctions unless it verifiably suspends nuclear enrichment.

* Iran warns of “painful” response if Israel attacks Iran’s defense minister was quoted on Tuesday as warning Israel of a “very painful” response if it launched a military strike over the Islamic Republic’s disputed nuclear program.

* Iran, Iraq agree to boost defense cooperation Iran and Iraq agreed to boost defense cooperation during a visit of Iraqi Prime Minister Nuri al-Maliki to Tehran.

* Ministers favor wide-scale Gaza op Fear of a weak cease-fire agreement which would work to the advantage of Hamas led a majority of ministers to express their support.

* Arabic ‘Threatens’ Israeli Supremacy In a move that has outraged both Arab Israelis and some progressive Jewish Israelis, a new bill was presented to the Israeli Knesset.

* ‘Mubarak shuns summit to avoid Assad’ A mini-summit of Arab leaders opened in the Libyan capital on Tuesday but Egypt’s President Hosni Mubarak stayed away from the venue.

* France warns Ireland on EU treaty ‘No’ vote French foreign minister Bernard Kouchner has warned Ireland about the consequences of voting “No” in Thursday’s referendum.

* A divide even among Israel’s supporters When Prime Minister Ehud Olmert of Israel addressed the American Israel Public Affairs Committee recently he got a big hand when he denounced Iran.

* US: Iraq security pact can be finalized in July The U.S. State Department’s top Iraq adviser said Tuesday he believes an agreement to establish a long-term security relationship between Iraq and the United States will be completed by the end of July.

* Sun Goes Longer Than Normal Without Producing Sunspots The sun has been lying low for the past couple of years, producing no sunspots and giving a break to satellites.

* Fatah and Hamas ‘restore trust’ Rival Palestinian factions Hamas and Fatah have held two days of talks in the Senegalese capital Dakar.

* Khamenei criticises US role in Iraq Ayatollah Ali Khamenei, Iran’s supreme leader, has advised Iraq’s visiting prime minister against signing an agreement with the US keeping foreign troops in the country beyond 2008.

* EU holds breath ahead of Irish treaty referendum All eyes are on Ireland this week as the European Union awaits the result of the country’s EU treaty referendum on Thursday with a mixture of relief that the day has finally come around and fear that it may bring a “no” vote.

* Israel tries to play down minister’s warning of attack on Iran Israel yesterday attempted to play down a warning from a senior government minister that an attack on Iran was “unavoidable” if Tehran continued to develop nuclear weapons.

* Qureia: Latrun also up for negotiation Top Palestinian envoy tells Palestinian reporters Israel has offered East Jerusalem, Jordan River Valley, Dead Sea as part of land-swap offer.

* Time overdue for a world currency The world economy is suffering from high inflation, stemming from overly expansionary monetary policy in the United States, as indicated by negative real interest rates and the rapidly depreciating dollar.

* Israeli officials: Israel-Syria talks set to resume this week Indirect peace talks between Israel and Syria are scheduled to resume this week in Turkey, Israeli officials said on Monday.

* Arab countries complicate Med Union plan A number of Arab countries are worried that if they join the EU’s planned Mediterranean Union together with Israel, it would imply a normalisation of bilateral relations, with the Algerian foreign minister stressing that an overall vision for the project still has to be agreed.

* Pressure from oil prices spreads Rising oil prices are beginning to cut into the profits of a wide range of businesses, pushing many to raise prices and maneuver aggressively to offset the rising cost of merchandise made from petroleum.

* President George Bush begins farewell tour of Europe . . . and this time he hopes to be among friends President Bush embarks today on his last important trip to Europe, a six-day swing that will include a dinner with Gordon Brown and a meeting with the Queen at Windsor Castle.

By: Hossein Askari and Noureddine Krichene – Asia Times Online (Holdings), Ltd.

The world economy is suffering from high inflation, stemming from overly expansionary monetary policy in the United States, as indicated by negative real interest rates and the rapidly depreciating dollar. Low interest rates discourage savings, reduce bond yields and cause investors to seek higher yields in speculative commodities and foreign currency markets.

Read more….

* 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.

* PM: Pendulum closer to harsh Gaza op Prime Minister Ehud Olmert returned to Israel from the US on Friday morning and hinted that Gaza’s day of reckoning was fast approaching.

* Hamas vows to continue attacks Hamas warned on Thursday afternoon that it would continue to launch attacks against Israeli communities near the Gaza border.

* Arab Anger Forces Obama to Backtrack on Jerusalem Within 24 hours of expressing his firm support for a united Jerusalem in a speech to a pro-Israel lobby organization, US Senator Barack Obama found himself forced to backtrack.

* Olmert spokesman: All options on table regarding Iran Referring to Iran’s nuclear program, a spokesman for Prime Minister Ehud Olmert said that “all options must remain on the table”.

* Crisis talks over Turkish ruling Turkey’s ruling party has held an emergency meeting after its landmark measure allowing students to wear headscarves was blocked.

* ‘Syria to let inspectors visit only 1 suspected nuke site’ Syria told a 35-nation meeting in Vienna that it will limit the sites UN nuclear inspectors will see during their visit.

* PM to Bush, Abbas: I’ll weather legal storm, stay in office Prime Minister Ehud Olmert told President George W. Bush and Palestinian President Mahmoud Abbas this week that he believes he can overcome his legal and political difficulties.

* Syria, Lebanon forging new relationship Damascus and Beirut are heading toward normalization and full diplomatic relations for the first time in their modern history.

* World Leaders Pledge to Combat Food Crisis World leaders at a UN summit in Rome have pledged to reduce trade barriers and boost agricultural production to combat a global food crisis.

* Medvedev warns against Nato entry Russian President Dmitry Medvedev has warned Georgia and Ukraine of serious consequences if they press ahead with plans to join Nato.

By: Matthew Wagner and AP – The Jerusalem Post

In what has been seen as a bid to secure geopolitical security at a time when oil prices are skyrocketing, Saudi Arabia’s King Abdullah launched a three-day Muslim conference Wednesday aimed at making peace within Islam.

Read more….

* US intel chief here to consult on Iran The US Director of National Intelligence Mike McConnell paid a rare visit to Israel Tuesday for talks with heads of the Israeli intelligence community.

* Bush to Olmert: Iran existential threat to peace President Bush is trying to reassure Israelis worried about the US commitment to keeping Iran from obtaining nuclear weapons.

* Oil a factor in Saudi religious summit Saudi Arabia’s King Abdullah launched a three-day Muslim conference Wednesday aimed at making peace within Islam.

* Zawahiri urges more Israel attacks Ayman al-Zawahiri, al-Qaeda’s second-in-command, has called on Palestinians to step up attacks on Israel.

* ‘Whole state’ behind Darfur crime The “whole state apparatus” of Sudan is implicated in crimes against humanity in Darfur.

* ‘Iran, Turkey cooperate against Kurds’ Turkey and Iran have been carrying out coordinated strikes against Kurdish rebels based in northern Iraq.

* Medvedev on first visit to West Russian President Dmitry Medvedev is starting a visit to Germany – his first trip to Europe since becoming Russian president last month.

* Arabs shocked by Obama speech Arab leaders have reacted with anger and disbelief to an intensely pro-Israeli speech delivered by Barack Obama.

* Water crisis to be biggest world risk A catastrophic water shortage could prove an even bigger threat to mankind this century than soaring food prices and the relentless exhaustion of energy reserves.

* Belgian finance minister eyes eurogroup presidency Belgian finance minister Didier Reynders could succeed Luxembourg’s premier Jean-Claude Juncker as the next president of the eurogroup.

* Israeli warning over nuclear Iran Israeli Prime Minister Ehud Olmert has said drastic measures are needed to stop Iran obtaining nuclear weapons.

* EU foreign policy expected to enter ‘new era’ The European Parliament is seeking to bolster its role in the bloc’s common foreign and security policy.

* US tells Syria not to restrict UN nuclear probe The United States on Wednesday demanded Syria give free rein to UN nuclear investigators.

* Top US official: End of the road for Olmert As Prime Minister Ehud Olmert presses on with his week-long trip to Washington, it would seem his domestic woes have grown wings.

* Israeli on Arab TV: J’lem Was Ours When Moslems Worshipped Idols Bar Ilan University political scientist Dr. Mordechai Kedar told a Moslem show host on the Arabic-language Al Jazeera television network, “Jews were in Jerusalem while your ancestors were drinking wine and bowing to idols.”

* Settlers rebuild Hebron outpost after IDF razes it for 32nd time Kiryat Arba settlers rushed overnight to rebuild the synagogue marking Hazon David, an illegal outpost near Hebron.

* Armies ‘head for central Sudan’ Rival troops from north and south are converging on central Sudan.

* Rabbis launch ‘prayer for Europe’ at EU ceremony Jewish leaders will launch a new prayer for Europe on Wednesday at a ceremony inaugurating Brussels’ main Orthodox synagogue as “The Great Synagogue of Europe.”

* UN says solving food crisis could cost $30 billion Resolving the global food crisis could cost as much as $30 billion a year and wealthier nations are doing little to help.

* Palestinian negotiator: Only a miracle will bring peace by year’s end The lead Palestinian peace negotiator on Wednesday said that only a miracle would bring about a peace deal with Israel by the year-end target.

* UN sets out food crisis measures UN Secretary General Ban Ki-moon has urged nations to seize an “historic opportunity to revitalise agriculture” as a way of tackling the food crisis.

* Assad wants Golan, up to Tiberias Syrian President Bashar Assad vowed on Monday never to give up his demand that the entire Golan Heights be returned to Syrian control.

* Iran ‘not seeking’ nuclear arms Iran’s supreme leader has insisted it will continue its nuclear activities for civilian purposes only and will not manufacture nuclear weapons.

* Iran tells Hamas to ‘keep up resistance’ Incoming Iranian parliamentary speaker, Ali Larijani, spoke to Hamas Prime Minister Ismail Haniyeh Tuesday morning and expressed faith in Hamas’s regime in the Gaza Strip.

* Arab nations ‘failing’ Sudan The leader of a Sudanese rebel group has criticised Arab nations for not giving enough attention to the violence and political turmoil in Sudan and Somalia.

* ‘Zionism has damaged Europe’ Iranian President Mahmoud Ahmadinejad has again spoken out against Israel, saying that Europe has endured the “biggest damage” from the “Zionists.”

* Syria says Israel should face nuclear checks Syria’s official press lashed out at the United States and Israel on Tuesday over claims it was building a secret nuclear reactor.

* PM to discuss Iranian threat with Rice Prime Minister Ehud Olmert was assured a proper reception from President Bush and other US officials.

* Algerian Christian converts fined Four Algerian Christians have been given suspended jail terms and fines for worshipping illegally.

* Anti-Christian ‘Cleansing’ Campaign Picks Up Pace in Gaza Attacks on Christian targets and those identified with Western culture have grown more frequent in Gaza in the past two years.