Israel-Lebanon: Israeli Prime Minister Ehud Olmert is warning of "far-reaching consequences" after rockets fired by Hezbollah militants in Lebanon killed at least eight people in the Israeli city of Haifa.
Mr. Olmert issued the statement today (Sunday) just moments after at least ten rockets struck Haifa, in northern Israel. The majority of casualties were reported in the area around the city's main railway station.
The Israeli military is now urging all residents of southern Lebanon to leave the area immediately - and is calling on residents in Tel Aviv to be on alert.
The Haifa attack was worst strike against Israel since it began an offensive against Hezbollah following the group's capture of two Israeli soldiers in a cross-border raid last Wednesday.
Israeli carried out a fifth straight day of airstrikes today (Sunday), pounding Beirut's southern suburbs.
Israek-Palestinians: Israeli tanks and armored personnel carriers have moved back into the northern Gaza Strip, continuing an offensive that began after a soldier was kidnapped three weeks ago.
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The ground forces, escorted by helicopters firing machine guns, crossed the border early today (Sunday) near the town of Beit Hanoun. Local officials say three Palestinian gunmen were killed and at least 10 other people wounded in an Israeli airstrike and other clashes.
Northern Gaza has been used by militants to fire rockets into Israel.
On Saturday, Israeli aircraft attacked what the military called a rocket-making factory in Gaza City, killing a Palestinian.
Mideast Reaction: President Bush says Israel has every right to defend itself against terror in its conflict with Hezbollah in Lebanon, but he is also urging Israel to be "mindful of the consequences."
Mr. Bush said today (Sunday) the "root cause" of the fighting is Hezbollah and its relationship with Syria and Iran. He also called for "restraint" in the fighting because of concerns about the fragile democracy in Lebanon.
Mr. Bush made his comments in St. Petersburg, Russia, after discussing the Mideast crisis with British Prime Minister Tony Blair on the sidelines of the G-8 summit. Mr. Blair says extremists backed by Iran and Syria want to disrupt Lebanese democracy by creating tension and hostility.
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