The United States has taken another step in restoring normal diplomatic relations with Libya, as President George W. Bush nominated a US ambassador to the once-outcast nation.

Syria has signalled to the UN’s Middle East envoy a willingness to change its relationship with Iran, Hizbollah and Hamas if progress were made towards a peace deal with Israel.

A thick blanket of smoke covered a Palestinian refugee camp Thursday as the army unleashed one of its heaviest bombardments against Al Qaeda-inspired gunmen holed up inside.