* Egypt warns of Israel-Lebanon escalation Egyptian President Hosni Mubarak reassured his Lebanese counterpart, Sa'ad Hariri, on Tuesday that Israel does not plan to attack his country.
* 'Hizbullah more armed than most gov'ts' US Defense Secretary Robert Gates on Tuesday night warned of Hizbullah's alarming military capabilities.
* Barak warns against waiting for Iran The United States is "doing the right thing" by pursuing a diplomatic solution to the threat that Iran may soon gain a nuclear weapon".
* Israel eyes Syria-Turkey military drill Syria and Turkey began three days of joint military exercises on Tuesday, raising concerns within the Israeli defense establishment about the strengthening ties between the two countries.
* Barkat: US demand 'slap in the face' Nir Barkat once again rejected demands for a freeze on Jewish construction in east Jerusalem, with the capital's mayor describing the US stance on the issue as a "slap in the face.".
* Fayyad: Ready for statehood by Aug. '11 Palestinian Authority Prime Minister Salam Fayyad is quietly changing the rules of the Arab-Israeli conflict with a simple credo: Palestinians have to build their state now and cannot wait for a peace deal with Israel.
* UN Mideast Envoy Invokes 1947 Partition Plan UN Special Coordinator for the Middle East Peace Process Robert Serry delivered a lecture Tuesday at the Hebrew University in Jerusalem, under the title – "Is the Two-State Solution Fading?"
* Greece crisis: Investor fears grow The head of the International Monetary Fund has warned that the crisis in Greece could spread throughout Europe.
* Finding Noah's Ark: Hong Kong Filmmaker Claims to Have Found Biblical Treasure A new claim by an evangelical Christian filmmaker and Turkish scientists that Noah's Ark has been found encased in ice on Mount Ararat has been met with equal parts excitement and skepticism.
* Former PM urges interim government in Iraq The front-runner in Iraq's recent parliamentary elections on Wednesday called for the formation of an impartial, internationally supervised caretaker government to prevent the country from sliding into violence.