1. Fissures appear in both Hamas and Israeli cabinet leadership over talks of cease-fire. As Israel's incursion and hits on Hamas begin to net deep effects, pressure mounting to end operations.

2. Iran has inked a $1.76 billion deal with China to develop its neglected and broken oil fields. Meanwhile, the UN has handed Iran the gavel overseeing UNDP program promoting "good governance and fighting poverty."

3. Operations continue in parts of Pakistan's northwest and tribal areas, but government is struggling to hold or make gains as professional forces diverted to Indian border while Taliban and al-Qaeda redouble and recover.

4. References to Joint Operating Evironment 2008 report begin anew as increasing violence and trouble in Mexico bring attention to JOE 2008's warning that the entire Mexican government and economic system may collapse, ptentially causing a severe domestic security crisis in the US.

AFGHANISTAN
Few comforts, much danger for outpost GIs - Washington Times

CHINA
Iran, China sign $1.76 billion deal to develop iranian oil fields - RIA Novosti

GAZA
Rift apparent in Hamas as fighting intensifies - IHT
Faultlines Emerge in Israeli Cabinet Over 'Humanitarian Cease-Fire' Talk - Jerusalem Post
Progress Reported in Gaza Truce Talks - Washington Post
Phased Gaza ceasefire takes shape: diplomats - Reuters

IRAN
Iran Handed Leadership of UN program on 'good governance and poverty' - Forbes

IRAQ
US: Iran a major threat to Iraq's stability - VOA

ISRAEL
Venezuela severs ties with Israel over Gaza - AP
Getting It: The Essential Facts of the Hamas/Israel Conflict - NRO

PAKISTAN
Desperate moves on to secure Swat -- the lost valley - DAWN (Pak)
Pakistan Describes Efforts Against Group Accused in Mumbai Attacks - VOA

RUSSIA
Eastern Europeans Appeal For an End to Gas Standoff - Washington Post

UNITED STATES
Panetta faces queries on role in shaping rendition policy in Clinton administration - Washington Times
U.S. military report warns 'sudden collapse' of Mexico is possible - El Paso Times
Source Data: Joint Operating Environment 2008 (Ppg. 38-40) - US Joint Forces Command