World Highlights

¤ Global oil prices could hit $200 per barrel if the United States pursues international sanctions against Iran, an Iranian official said yesterday, although analysts passed the comment off as sabre rattling.

Iran's Foreign Relations Vice Minister Manuchehr Mohammadi told Venezuelan state television, "The first consequence of these sanctions would be an increase in the price of oil to around $200 per barrel."

¤ North Korea has been working closely with Iran to develop its long-range ballistic missiles, possibly using Chinese technology, and is building large bases to prepare for their deployment, a South Korean state-run think tank said.

North Korea is also building new sites near the Demilitarised Zone with the South for short-range missiles and is deploying missiles with improved precision that can strike most of Japan, the Institute of Foreign Affairs and National Security (IFANS) said in a report.

¤ Artillery fire killed at least 15 civilians sheltering from fighting in Sri Lanka, the army said, as troops battled Tamil Tiger rebels and the island slipped back towards civil war.

More than 800 people have died this year and ambushes, air strikes and naval clashes had become commonplace, but it was a dispute over a rebel-held water supply that led to the first major ground fighting last week since a 2002 ceasefire.

¤ Tropical Storm Chris weakened on a westward path toward Cuba and was expected to fizzle before nearing US oil facilities in the Gulf of Mexico.

Strong winds in the upper atmosphere sheared off the top of the storm, robbing Chris of its punch. Forecasters at the National Hurricane Center in Miami said it was expected to dissipate into a tropical depression, a gusty mass of showers.