World News: Obama tells Middle East's leaders to seize peace chance

US president Barack Obama challenged Middle East leaders to seize a fleeting opportunity to deliver peace to a region haunted by decades of hostility.

Mr Obama's words came in the shadow of fresh violence as he convened the first direct Israeli-Palestinian talks in two years.

"I am hopeful -cautiously hopeful, but hopeful," Mr Obama said with the leaders of Jordan, Egypt, Israel and the Palestinians beside him in the White House.

The mood appeared cordial as the leaders started talks aimed at creating a sovereign Palestinian state and a secure Israel.

Palestinian president Mahmoud Abbas and Israeli prime minister Benjamin Netanyahu shook hands warmly and thanked Mr Obama for bringing them together despite such intractable differences as Mr Abbas' demand that Israel ends settlement expansion in the West Bank.

"Do we have the wisdom and the courage to walk the path of peace?" Mr Obama asked.

Each of the leaders answered positively, but with qualifications, and spoke of their hopes for a breakthrough within the one-year timeframe prescribed by Mr Obama.

Power vacuum after arrests

The southern Brazilian city of Dourados has been left with a power vacuum by the arrests of all local top officials, police say.

Mayor Ari Artuzi, his wife, deputy, and 25 other people have been arrested on suspicion of fraud and corruption.

Suicide blasts leave 25 dead

At least 25 people have been killed and 170 injured after three bomb explosions during a procession by Shia Muslims in the Pakistani city of Lahore.

Local police chief Aslam Tareen said that at least two of the attacks had been carried out by suicide bombers.

Tar balls ruin Goa's beach

SCORES of tar balls were continuing to wash up on India's renowned Goa beaches today after a ship dumped tons of waste oil off the country's western coast.

Semi-solid lumps of oil formed layers up to six inches deep on the beaches, which are popular with British tourists.

Teams of workers struggled to clear the debris, but more tar balls were still washing ashore.

Officials believe a ship dumped the burnt oil at sea three days ago.

Castro takes blame over gays

FORMER president Fidel Castro said he is ultimately responsible for the persecution suffered by homosexuals in Cuba after the revolution of 1959.

He told a Mexican newspaper that there had been moments of "great injustice" against the gay community.

US island is evacuated in hurricane fear

United States: Around 30,000 residents and visitors were today ordered to evacuate Hatteras Island, on North Carolina's Outer Banks coastline as Hurricane Earl approached.

Officials had earlier asked only visitors to leave.

Afghanistan: The central bank has said it will stand behind the nation's largest bank after its two top executives resigned amid allegations of mismanagement and unorthodox lending practices.