1. Al-Qaeda's Zawahiri professed eternal US failure in Iraq as another anti-al-Qaeda funeral is bombed, killing 30 in Diyala province. While largely cornered in north, al-Qaeda still capable of bombing elsewhere.
2. In Pakistan's Mohmand Agency, the Taliban have declared the implementation of Shari'a law after a two day council.
3. Israeli defense officials report increase in Iranian arms smuggling through tunnels and sea containers that float just beneath waters' surface.
4. Hamas attacks have spiked during Carter's visit, during which he declared Gaza siege a "crime and atrocity," and said "the worst thing" Hamas has done is fire rockets, which is "abominable and an act of terrorism.”
New Zawahiri Tape: Al-Qaeda declares 'failure and defeat' for U.S. troops in Iraq - CNN
Zawahiri calls on Muslims to make Iraq 'fortress of Islam' - AFP
Al-Qaida's Finances: Evidence of Organizational Decline? - Counterterrorism Blog
Analysis: Al-Qaeda’s New Hardliners in Yemen Strike Western Interests - Jamestown
Another funeral bombing kills 30 more anti-al-Qaeda Iraqi mourners - BBC
Intercepted al-Qaeda Letter Reveals Tactics, Strategy - DefenseLink
U.S. Begins Erecting Wall in Sadr City - New York Times
Defense officials: Iran smuggling arms into Gaza by sea - Jerusalem Post
Flashback 2007: Karine-A Redux: Saggers In Gaza - ThreatsWatch
Background: The Threat of Maritime Terrorism to Israel - International Institute for Counter-Terrorism
Gaza violence up during Carter visit - Washington Times
HAMAS pledges to avenge Israeli attacks - AKI
Carter calls Gaza blockade a 'crime and atrocity' - Haaretz
Carter meets again with Hamas - Los Angeles Times
Carter: Gaza residents 'starving to death' - Ynetnews