By Yoav Stern, Haaretz Correspondent and News Agencies  
On the first day of her Middle East tour, U.S. Secretary of State Condoleezza Rice on Tuesday signed a joint statement with Egypt, Jordan and six Persian Gulf states, endorsing the 2002 Arab peace initiative as one of the foundations for Middle East peace.
Visiting the region with Rice is Secretary of Defense Robert Gates.
The initiative offers Israel normalized relations with all Arab countries in return for full withdrawal from the territory Israel captured in 1967. 
Speaking at a joint news conference with Rice at the Egyptian Red Sea resort of Sharm al-Sheikh, where the conference took place, Egypt's Foreign Minister Ahmed Aboul Gheit emphasized the importance of the Palestinian issue.
Aboul Gheit addressed U.S. President George W. Bush's speech of July 16, in which he proposed an international peace conference later this year.
The Egyptian foreign minister indicated he would like to see an elaborate agenda for the U.S.-hosted meeting, giving high priority to the establishment of a Palestinian state in the near future.
"I believe that what is needed is accelerated moves in order to reach the horizon of that [Palestinian] state, and an agreement between the Israeli ...   more »

By Jerome R. Corsi
Iran has intensified pressure on the falling U.S. dollar by demanding that Japan begin paying for Iranian oil in yen, instead of dollars.
Hojjatollah Ghanimifard, the head of the National Iranian Oil Company, or NIOC, has confirmed the company has asked Japan to open letters of credit in yen in preparation for NOIC issuing oil invoices in Japanese currency.
In April, WND reported Iran successfully pressured China to begin paying for Iranian oil in euros, not dollars.
To date, Iran has not followed up on the announcement that Iran would create an Iranian oil bourse to quote oil in euros, instead of dollars.
Still, according to Hojjatollah Ghanimifard, 70 percent of Iran's oil income is now paid in currencies other than the U.S. dollar.
Iran also has announced that the country will not participate in any OPEC move to increase oil production to counter rising oil prices.
Yesterday, crude oil prices rose to a record high $78 a barrel on international markets.
Iran's continued switch from the dollar reflects its concern with the currency's falling value along with a desire to counter the U.S.-backed sanctions imposed by the U.N. on Tehran for transparency violations in its ...   more »

Rhonda Schwartz Reports:
 A new al Qaeda propaganda ad, headlined "Wait for the Big Surprise" and featuring a digitally altered photograph of President George Bush and Pakistan's President Pervez Musharraf standing in front of a burning White House, was posted on the Internet today.
The brief clip from al Qaeda's "as Sahab" propaganda arm juxtaposes the doctored photo of Bush and Musharraf along with previously seen images of al Qaeda's top leadership -- Osama bin Laden, Ayman al Zawahri and Adam Gadahn -- as well as a photo of an SUV in a motorcade.
There is no additional information provided in the ad, and it closes with the words, "Soon -- God willing," written across the screen and repeated several times.
See the Al Qaeda Web Ad Captured by ABC News
Following the recent failed London-Glasgow terror plot, U.S. intelligence officials have been paying closer attention to the now frequent propaganda releases from as Sahab, studying the videos for hidden clues or signals.
The full video is expected to be released on the Web in the next 24 to 48 hours.
Original Source
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WASHINGTON (CNN) -- The United States is developing a proposed $20 billion, 10-year arms sales package for Saudi Arabia, a senior administration official confirmed on Saturday.
Secretary of Defense Robert Gates, left, and Secretary of State Condoleezza Rice will meet with Saudis next week.
 The proposed sale, first reported in The New York Times, is intended to upgrade the Saudi military's ability to counter possible Iranian aggression in the Persian Gulf region, the official said.
"This is all about Iran," said the official, who spoke to CNN on condition of anonymity because discussions with the Saudis are still going on and the arms sale deal has not been completed.Israel is expected to raise objections to the arms package, and has expressed concerns about previous Saudi arms deals.
The official said the Bush administration is mindful that Israel must maintain its "qualitative edge" in the region.
Besides Saudi Arabia, other countries in discussion with the United States about arms sales include the United Arab Emirates, Kuwait, Qatar, Bahrain and Oman.
One of the more controversial proposals will probably be selling the Saudis, for the first time, satellite-guided bombs known as JDAMs. The sale may include a 500-pound and a 2,000-pound version ...   more »

A new government study is being condemned by the Christian ministry the Barnabas Fund because its proposals would move closer to imposing Islam in the United Kingdom as "a religion of state."
Among the proposals from the study being considered for implementation is the provision by universities for Islamic studies for all students.
The report was initiated by Bill Rammell, the minister of state for higher education and lifelong learning, officials said. He appointed Ataullah Siddiqui, senior research fellow at the Islamic Foundation, to write it.
The Barnabas Fund, in an analysis, said the report "signals another step toward the Islamisation of Britain and its education system"
"Should this report be implemented, education will be handed over more and more to Muslims who will train and shape the next generation," the analysis said.
The Barnabas Fund, which works primarily with Christians in Muslim-majority environments by channeling money from Christians, through Christians to Christians for projects developed by local bodies of believers, said the appointment of Siddiqui, at the outset, signaled a problem.
"It is well known that the Islamic Foundation is an Islamist institute founded by high ranking members of the Pakistani Islamist party, Jama'at-I Islami," the group said. "However, ...   more »

Russian explorers have planted their country's flag on the seabed 4,200m (14,000ft) below the North Pole to further Moscow's claims to the Arctic.
They were travelling aboard two mini-submarines on what is believed to be the first expedition of its kind.
Having planted the rust-proof titanium metal flag, the explorers will collect scientific samples and begin the risky journey back to the surface.
Melting polar ice has led to competing claims over access to Arctic resources.
Russia's claim to a vast swathe of territory in the Arctic, thought to contain oil, gas and mineral reserves, has been challenged by other powers, including the US.
The mission's leader, explorer and parliamentarian Artur Chilingarov, told Itar-Tass news agency that his mini-submarine had a "smooth" landing on the seabed.
"The yellowish ground is around us, no sea dwellers are seen," he said.
'Heroic mission'
The mini-submarines, Mir-I and Mir-II, were brought to the North Pole by the two ships in the Russian expedition - a nuclear-powered ice-breaker and a research vessel.
 It's a very important move for Russia to demonstrate its potential in the Arctic... It's like putting a flag on the Moon
Sergei Balyasnikov
Russian Arctic and Antarctic Institute  
The expedition ...   more »