1. Rocket and mortar fire into Israel from Gaza continues as Hamas leaves Cairo without a peace deal. Egypt said to have prevented millions from entering Gaza through tunnels.

2. Israeli navy intercepted and impounded a Lebanese ship bound for Gaza said to be carrying relief supplies.

3. Somali pirates reportedly paid $3.2 million to release Ukrainian ship carrying 33 tanks and other heavy armaments. The fight between the two Islamist offshoots of the Islamic Courts Union for primacy and control of Somalia continues apace.

4. Saudi Arabia releases a list of its 85 'most wanted' terrorists, and at least 11 of those on the list had been previously released to Saudi Arabia from US-run Guantanamo Bay facilities for rehabilitation. One operates an al-Qaeda cell from Iranian soil.

AL QAEDA
Saudi Arabia's 85 Most-Wanted Includes 11 Released Guantanamo Bay Detainees - Long War Journal
'Indians among Al Qaeda suspects arrested in Spain' - Sify

CHINA
Report: China Doubled Attack Sub Patrols in 2008 - Defense News

DENMARK
Denmark hosts Gaza arms smuggling conference - Monsters & Critics

GAZA
Mortar fire from Gaza continues to pound Israeli territory - Ha'aretz
Egypt prevents Hamas taking millions into Gaza - AFP
Israel and Hamas Prepare for the Next Gaza War - TIME
U.N. Says Hamas Seized Aid Meant for Needy Civilians - FOX News
Al-Qaeda No. 2 criticizes Obama over Gaza - AP

INDIA
India Refutes Submarine Encounter With Chinese Warships off Somali coast - RTT News

IRAN
Obama Era on Iran Relations Begins: Last Chance for Diplomacy? - Middle East Times
Editorial: Tehran's satellite launch shows America its nuclear intent - Telegraph (UK)

ISRAEL
Experts Dampen Expectations of Israeli-Palestinian Peace Deal - VOA
IDF intercepts and impounds Lebanese Gaza aid ship - Jerusalem Post

LEBANON
Israel warns Lebanon over memorial for Hizballah terrorist Mugniyeh - Reuters

TURKEY
Gaza war creates rift between Israel and Turkey - IHT

UNITED STATES
U.S. Oil Dependency on the Middle East Exaggerated - MEMRI

SOMALIA
Somali pirates paid $3.2M to free hijacked Ukrainian arms ship - CS Monitor
Somalia clash death toll put at 13 after IED kills civilians - Daily Nation (Kenya)
Thousands of Somalis fleeing to Ethiopia - IRIN (UN)
Hopes high for Somalia's new Islamist president, former ICU leader - CNN