World Highlights

¤ A car bomb exploded in the Shi'ite Muslim city of Najaf, killing at least 13 people, as Iraqi leaders struggled to break a deadlock over forming a government they hope can avert sectarian civil war.

The explosion prompted the authorities to impose a curfew.

¤ Interim Prime Minister Ehud Olmert received the formal nod to form a government, which he pledged would set Israel's permanent borders within four years with or without Palestinian agreement.

¤ President George W. Bush authorised the leak to the media of classified material about Iraq, a former aide to Vice President Dick Cheney said according to court papers filed by prosecutors.

¤ Police fired tear gas to break up stone-throwing anti-monarchy protesters in Nepal after a fierce overnight attack on a town by Maoist rebels left 22 people dead, witnesses and authorities said.

¤ Pakistani forces killed at least 40 pro-Taliban militants in a troubled tribal region near Afghan border, the military said, sharply raising the tally from the previous day's fierce fighting.

¤ A Djibouti-flagged ferry sank off the coast of the African country, the US military said, and media reports said at least 69 people died out of more than 300 passengers on board the vessel.

¤ Ukrainian President Viktor Yushchenko tried to patch together a coalition of "Orange Revolution" liberals for a new government, bypassing a party more sympathetic to Moscow.

¤ The UN Security Council could give Iran only two chances to curb its nuclear programs before imposing sanctions, the US ambassador to the UN said, while acknowledging winning support for that strategy would be difficult.