(Adds air strike, updates casualties)
KFAR AZA, Israel, May 9 (Reuters) - A Palestinian mortar attack from the Hamas-controlled Gaza Strip killed an Israeli civilian on Friday, a police spokesman and ambulance workers said.
After the mortar attack, two Israeli air strikes killed five Hamas security men in the Gaza Strip, Palestinian medical officials and Hamas said.
Palestinian militants from the Islamist group Hamas, who regularly fire rockets and mortars into Israel from Gaza, claimed responsibility for the attack on the Kfar Aza collective farm in southern Israel.
Such attacks rarely cause death or injury but sow panic in border towns. Ambulance workers said the dead Israeli civilian was a middle-aged man and three other people were wounded.
The last time an Israeli civilian was killed by cross-border fire, on Feb. 27, the attack was followed by days of Israeli military action in the Gaza Strip which left more than 120 Palestinians dead. Many of them were civilians.
Palestinian medical workers said four other Hamas security men were wounded in the Israeli air strikes on Hamas outposts in the southern Gaza towns of Rafah and Khan Younis.
An Israeli army spokeswoman said the air strikes were in response to continued cross-border attacks.
Israel frequently conducts raids in Gaza which it says are aimed at curbing the rocket fire. More than 1,950 rockets and mortars have been fired from Gaza at Israel this year, the army said.
Separately, a Palestinian gunman was killed in a clash with Israelis in the occupied West Bank on Friday, Palestinian security sources and Israeli emergency workers said.
Israeli and Palestinian sources offered differing accounts of the incident near the West Bank city of Ramallah.
Palestinian security sources said the gunman was killed by Israeli soldiers.
Israel's ZAKA emergency service said the gunman was killed by armed Israeli settlers who had come under attack.
The Israeli army said it was investigating the incident. (Reporting by Yehuda Peretz and Nidal al-Mughrabi in Gaza; editing by Andrew Roche) ((rebecca.harrison@reuters.com; +972 2 632 2202; Reuters Messaging: rebecca.harrison.reuters.com@reuters.net))
Keywords: PALESTINIANS ISRAEL/VIOLENCE
(Recasts after Libya accepts apology)
By Gavin Jones
ROME, May 9 (Reuters) - Libya accepted on Friday an apology from an Italian minister whose T-shirt offended Muslims in 2006, and withdrew threats of "repercussions" against Italy over the anti-immigrant party politician's inclusion in a new government.
Roberto Calderoli of the Northern League was named this week as a member of the new administration of Silvio Berlusconi, who was installed as prime minister for a third term.
A statement from the Libyan embassy in Rome said Libya noted "with satisfaction" the "public statement of regret" by Calderoli and, after further contacts with the Italian authorities, considered that "the case is closed".
Berlusconi, facing a diplomatic clash -- and possible energy sanctions -- after Libya made clear its anger at his choice of minister, said earlier he was "confident we will be able to clarify and calm down the situation with Libyan authorities".
Calderoli quit Berlusconi's last government in 2006 after wearing a T-shirt with a Danish cartoon of the Prophet Mohammad that angered Muslims worldwide. He was blamed for rioting that broke out at Italy's consulate in the Libyan city of Benghazi.
Libya had warned of "catastrophic consequences" if Calderoli became a minister again and reacted to his swearing-in on Thursday by saying it would no longer cooperate on preventing illegal immigrants from Africa landing on Italian shores.
The Libyan government was reported to be preparing sanctions against Italy such as shelving an agreement to extend the activities of Italian energy company ENI in Libya.
ANGRY RESPONSE
Returning as minister for "simplification" -- a new post without a full ministerial portfolio -- Calderoli was asked by Italian television about Libya's angry response to his appointment, and whether he regretted the T-shirt incident.
"Mine was a message of peace and rapprochement between the monotheistic religions but was misunderstood," he said. "I hope there aren't any problems today linked to something in the past that should be considered water under the bridge."
The Libyan embassy's statement said Calderoli had had further talks with the ambassador "during which he clarified the sense of the declarations he had already made to the media of the two countries."
New Foreign Minister Franco Frattini earlier on Friday called Libya "a friend" and said Italy "is committed to helping to develop those initiatives of strong collaboration with Europe that Libya wants."
Italy is Libya's main trading partner in Europe and ENI's Libyan assets are the subject of negotiations in the company's landmark cooperation deal with Russia's Gazprom.
Earlier on Friday Libya had demanded that Calderoli either step down or apologise for the 2006 episode.
"If the Italian government does not adopt one of these two options, it has to prepare itself for confronting the repercussions from its choice," the Gaddafi International Foundation said in a statement posted on its Web site.
The Foundation is chaired by Libyan leader Muammar Gaddafi's son Saif al-Islam, widely thought to play a major role in Libya's diplomacy with Western states.
Since the T-shirt incident, Calderoli has continued to offend Muslims in Italy by protesting at the construction of new mosques and threatening "pig day" protests to defile them. He once walked his own pet pig over a site intended for a mosque.
The Northern League, a long-standing ally of Berlusconi, is know for its vehement anti-immigrant rhetoric. The party made surprise gains in mid-April's election and was rewarded with four cabinet posts, including the Interior Ministry.
(Additional reporting by Stephen Brown and Lamine Ghanmi; Editing by Charles Dick) ((gavin.jones@reuters.com; +39 06 8522 4351; Reuters Messaging: stephen.brown.reuters.com@reuters.net))
Keywords: ITALY LIBYA/
* Hezbollah seizes west Beirut, death toll rises
* U.S. discusses counter-measures with other powers
* Governing coalition denounces "armed coup"
* White House restates support for PM Siniora
(Adds more U.S. quotes on Syria and Iran, paragraphs 2, 9-11)
By Tom Perry
BEIRUT, May 9 (Reuters) - Lebanon's Iranian-backed Hezbollah group took control of the Muslim half of Beirut on Friday in what the U.S.-backed governing coalition described as "an armed and bloody coup".
The United States pointed to Hezbollah's links with Iran and Syria, and said it was talking with other powers about taking measures against "those responsible for the violence".
At least 18 people have been killed and 38 wounded in three days of battles between pro-government gunmen and fighters loyal to Hezbollah, a Shi'ite movement with a powerful guerrilla army.
The violence follows 17 months of political deadlock between the Hezbollah-led opposition, which demands more say in government, and the ruling coalition. It has paralysed the country and left it without a president.
Lebanon's worst internal strife since the 1975-90 civil war erupted this week after the government decided to dismantle Hezbollah's military communications network. The group said the government had declared war.
In scenes reminiscent of the civil war, men with rifles roamed the streets amid smashed cars and smouldering buildings.
Fighting died down as outgunned government supporters handed over their weapons and offices to the army, which has tried to remain neutral in the conflict.
SYRIA AND IRAN
The anti-Syria ruling coalition said the "armed and bloody coup" was aimed at increasing Iran's influence and restoring that of Syria, forced to withdraw troops from Lebanon in 2005.
A U.S. State Department spokesman said Secretary of State Condoleezza Rice had phoned Saudi Foreign Minister Prince Saud al-Faisal, French Foreign Minister Bernard Kouchner and UN Secretary General Ban Ki-moon to discuss "what the international system can do to support this Lebanese government ... in the face of illegal acts, by the armed gangs".
"It is also becoming more apparent now that the linkages that we know exist, and are ongoing, between Hezbollah and Syria and Iran, are starting to manifest themselves in the current crisis," he said.
"We are seeing now some evidence of those groups that are linked to Syria, that are in Lebanon right now, are taking a much more active role in fanning the flames of the violence."
A White House spokesman said: "The United States is consulting with other governments in the region and with the UN Security Council about measures that must be taken to hold those responsible for the violence in Beirut accountable."
The White House restated its support for the government and urged Iran and Syria to end support for Hezbollah.
"This support is a reflection of our unshakable commitment to the Lebanese people and their hope for democratic change," U.S. Secretary of State Rice said.
A senior opposition source told Reuters that Hezbollah and its allies would maintain their roadblocks, including barricades on routes to the airport, until a full resolution of the crisis.
"All issues are linked. Beirut will remain shut until there is a political solution," the source said.
An influential pro-government leader called for dialogue.
Walid Jumblatt, leader of the Druze minority, said Hezbollah "regardless of its military strength, cannot annul the other".
KILLED TRYING TO FLEE
The dead included a woman and her 30-year-old son, killed while trying to flee Ras al-Nabae -- a mixed Sunni-Shi'ite Beirut district and scene of some of the heaviest clashes.
"They were trying to flee to the mountains. Instead ... they reached the hospital, dead," said a relative, who declined to give her name out of fear for her own safety.
"It was terrifying during the night. We couldn't even move about in the house," said another woman, a Ras al-Nabae resident who fled the area at first light with her children. "We spent the night in the corridor."
Hezbollah seized the offices of pro-government factions, including the Future group of Sunni politician Saad al-Hariri, in the predominantly Muslim western half of the city.
Backed by gunmen from the Shi'ite Amal group, Hezbollah handed over the offices to the army. Hariri supporters gave up their offices to the army elsewhere in the country.
Hezbollah also moved into Hariri-owned media outlets, and Hariri's television and radio stations went off the air. Opposition gunmen of the Syrian Socialist National Party set ablaze a building housing studios of Hariri's TV station.
"It certainly leaves the government weaker and the Future movement weaker," said Paul Salem, director of the Carnegie Middle East Center in Beirut.
But Hezbollah does not want to be seen as an "occupier of Beirut", he said, and handing control to the army appeared its most likely exit.
The European Union, Germany and France urged a peaceful resolution. Syria said the issue was an internal Lebanese affair while Iran blamed the United States and Israel for the violence.
Hezbollah was the only Lebanese faction allowed to keep its weapons after the civil war to fight Israeli forces occupying the south. Israel withdrew in 2000 and the fate of Hezbollah's weapons is at the heart of the political crisis.
For a factbox on scenarios click on [nL09111664]
For a factbox on the crisis click on [nL09819749]
For a factbox on travel warnings click on [nL09571677]
For a factbox on the Hezbollah click on [nL09840818]
For a chronology on Lebanon events click on [nLA8655613]
(Additional reporting by Nadim Ladki and Laila Bassam; editing by Andrew Roche) ((thomas.perry@reuters.com; +961 1 983 885; Reuters Messaging: thomas.perry.reuters.com@reuters.net))
Keywords: LEBANON/
(Adds quotes and background)
CRAWFORD, Texas, May 9 (Reuters) - The White House said on Friday it was "very troubled" by Hezbollah's actions in Beirut and urged Iran and Syria to halt support for the militant group after its fighters in the Lebanese capital routed forces loyal to the government.
The Bush administration also said it was conferring with the U.N. Security Council and other regional governments on possible action against Hezbollah for the violence that has racked Beirut for days.
"After months of paralyzing the democratically elected Lebanese government, Hezbollah has now turned its arms against the Lebanese people and challenged Lebanon's security forces for control of the streets," White House spokesman Gordon Johndroe said in a statement.
"The United States is consulting with other governments in the region and with the U.N. Security Council about measures that must be taken to hold those responsible for the violence in Beirut accountable," he said. Earlier on Friday, Johndroe told reporters, "We are very troubled by the recent actions of Hezbollah."
Speaking in Crawford, Texas, where U.S. President George W. Bush was at his ranch preparing for his daughter's wedding, Johndroe said the United States was calling on Hezbollah to "stop their attempt to defy the lawful decisions taken taken by the democratically elected Lebanese government."
"We also urge Iran and Syria to stop their support of Hezbollah and its destabilizing effect on the government of Lebanon," he said. Bush has led international campaigns aimed at diplomatically isolating Tehran and Damascus.
"The United States stands firmly with the Lebanese government and the people of Lebanon," Johndroe said.
Bush is due to meet Lebanese Prime Minister Fouad Siniora on May 18 at the Egyptian Red Sea resort of Sharm el-Sheikh at the end of a week-long visit to the Middle East.
Johndroe said the talks were expected to go ahead, but that U.S. officials would understand if Siniora decided to stay in Lebanon to deal with the crisis.
U.S. Secretary of State Condoleezza Rice telephoned leaders in the region about the events in Lebanon, State Department spokesman Sean McCormack told reporters in Washington.
"I would restate our unswerving commitment and support for the Siniora government," he said. "They are doing all the right things. ... Its use and deployment of the military serve the best interests of the Lebanese people and Lebanon."
At least 18 people have been killed and 38 wounded in three days of battles between pro-government gunmen and fighters loyal to Hezbollah, a Shi'ite political movement with a powerful guerrilla army.
The fighting, the worst internal strife since the 1975-90 civil war, erupted this week after the government decided to dismantle Hezbollah's military communications network. The group said the pro-Western government had declared war. (Reporting by Jeremy Pelofsky and Susan Cornwell; writing by Matt Spetalnick; editing by David Alexander and Mohammad Zargham) ((jeremy.pelofsky@reuters.com ; +1 202 898 8300; Reuters Messaging: matt.spetalnick.reuters.com@reuters.net ))
Keywords: LEBANON USA/
(Adds Egypt minister comments, French support)
CAIRO, May 9 (Reuters) - Egypt and Saudi Arabia called on Arab foreign ministers on Friday to meet urgently in Cairo to discuss the political crisis in Lebanon.
The meeting could come in the next two days, an Egyptian spokesman said.
Egyptian Foreign Minister Ahmed Aboul Gheit said in a statement the meeting was aimed at stopping "the armed elements' domination of the Lebanese street".
Hezbollah gunmen took control of large areas of Beirut on Friday in a third day of fighting against forces loyal to the U.S.-backed coalition.
"Only parties which want Lebanon to stay in conflict would benefit from this situation," Aboul Gheit added.
Egypt's Foreign Ministry spokesman said earlier Egypt and Saudi Arabia had applied for an immediate meeting of the council of foreign ministers of the Arab League, and expected it to happen within the coming two days.
French Foreign Minister Bernard Kouchner said in a statement the meeting would be held on Sunday in Cairo.
Arab League officials were not immediately available to confirm the date of the meeting but it said secretary-general, Amr Moussa, had cut short a visit to the United States and was back in Cairo on Friday to start consultations.
A Saudi Foreign Ministry official said earlier his country "called on all political factions to listen to the voice of wisdom and to place the country's interests above all other considerations", Saudi state television said.
"Lebanon's plunge into blind turmoil would only be a victory for foreign extremist forces," the unnamed official said.
At least 18 people have been killed in gun battles since the U.S.-backed government took action against a communications network run by Hezbollah, a Shi'ite political bloc backed by Iran and Syria, which runs a well-trained guerrilla army.
Saudi Arabia has emerged as a leading Arab power, as surging world oil prices have enabled the U.S. ally to play a bigger role in settling regional disputes. Saudi Arabia sees itself as the centre of mainstream Sunni Islam.
The kingdom is a main backer of the Sunni-led government in Lebanon.
It has backed Lebanon's economy with injections of cash, and blamed Hezbollah for Israel's 2006 land and air assault on the Arab country, saying it had provoked the Jewish state. (Additional reporting by Wael Gamal in Cairo; Writing by Firouz Sedarat; editing by Richard Balmforth) ((Gulf newsroom, dubai.newsroom@thomsonreuters.com))
Keywords: LEBANON/SAUDI
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