1. US embassy in Yemen attacked, latest reports indicate 16 killed, no American casualties. Car bomb detonated at gate, followed by minutes of gunfire and second explosion.

2. SecDef Gates is in Afghanistan while JCOS Chairman Mullen arrives in Pakistan. Pakistani army given orders to shoot Americans and US aircraft if another cross-border raid takes place.

3. General Petraeus transfers MNF-I command in Iraq to General Odierno, while Petraeus moves up to CENTCOM to oversee Iraq and Afghanistan/Pakistan theaters.

4. A grenade attack in Mexico has killed seven. Thrown into a Independence Day celebration crowd, suspected as part of the ongoing drug war there.

US EMBASSY BOMBING IN YEMEN
U.S. Embassy in Yemen Attacked - Washington Post
Bloodshed and dead bodies in front of the American embassy - Yemen Observer
16 Die in Attack on U.S. Embassy in Yemen - NY Times

HAMAS
Holy Land Foundation High-Stakes US Trial Begins Again In Dallas - New York Sun

AFGHANISTAN
Sec. Gates in Afghanistan as NATO Tries to Reduce Afghan Casualties - NY Times
Joint Chiefs Chairman Adm. Mullen in Pakistan on Unannounced Visit - DAWN

CHINA
No Oil for Blood: Thanks to three American senators, China will be pumping Iraqi oil - Weekly Standard

IRAN
Iran Ratchets Up Its Defiance of U.S. and U.N. - New York Sun
IAEA info suggests Iran worked on nuclear missile - AP

IRAQ
Petraeus transfers command in Iraq - Washington Times
The Woodward Way of War: On and Off Base In New Book - Weekly Standard

ISRAEL
Israel Postpones New Round Of Syria Peace Talks - NY Times

JAPAN
Japan Ends Hunt for Submarine Intruder, China Denies Involvement - Defense News

MEXICO
7 killed in Mexico grenade attack, Drug war escalates - Washington Times
Related: The Crossover of Urban Gang Warfare and Terrorism - Small Wars Journal

NORTH KOREA
North Korea Tests Engine of Long-Range Missile, Report Says - Washington Post

PAKISTAN
London warned of terror attacks after Pakistan raids - The Age
UK's PM Brown, Jack Straw Send Conflicting Messages on Supporting/Opposing US Pak Raids - Daily Times
Britain Breaks With U.S. Over Pakistan - New York Sun
US Halts Operations Into Pakistan: Al-Qaeda 1, US 0, Pakistan 0 - The Tank

SYRIA
Strike on Syria reactor a joint spy victory: CIA - Reuters