JIM LEHRER: Fighting in the Middle East flared on a second front today. Hezbollah militants killed at least seven Israeli soldiers and captured two others along the border with Lebanon.
In response, Israeli troops crossed into southern Lebanon with warplanes, tanks and gunboats. We have a report from Julian Manyon of Independent Television News.
JULIAN MANYON, ITV News Correspondent: A Hezbollah missile hits an Israeli army observation post on the border with Lebanon. Time after time, Israeli helicopter gunships have strafed suspected Hezbollah positions, but the exchanges of fire have continued.
It's been a black day for the Israeli army. At least seven of their soldiers are dead and two captured in clashes with Hezbollah guerillas.
It began this morning with a carefully planned Hezbollah attack on an Israeli border patrol. Three Israeli soldiers were killed, and two taken prisoner.
When Israeli army tried to rescue them, a tank hit a mine and four more soldiers died.
Israeli artillery has been firing deep into Lebanon. Israeli jets destroyed a key bridge to try to prevent Hezbollah from moving their prisoners, but the Israeli army now says it's given up hope of retrieving the prisoners quickly; instead, it's bringing up reinforcements and mobilizing reserves.
Israeli armor is mobilizing for what looks increasing like a full-scale incursion into Lebanon. The Israeli prime minister, Ehud Olmert, says that Lebanon is responsible for what has happened and will have to face the consequences.
It was attacks by the Lebanese Islamic movement Hezbollah that drove Israel out of south Lebanon six years ago. Now, Hezbollah appears to have chosen this moment to try to help Palestinian militants under siege in Gaza, and the capture of two Israeli soldiers gives them a powerful card to play.
On Lebanese television, their leader, Sheikh Nasrallah, says his movement wants to negotiate the release of Palestinian and Lebanese prisoners in Israeli jails. But the Israeli prime minister has repeated that his government will not negotiate for the lives of Israeli soldiers with what he called terrorists.
And in Gaza, Israeli operations have continued. In Gaza City, an Israeli bomb aimed at a leader of the armed wing of Hamas killed seven children and their parents. The Hamas leader is said to have escaped.
JIM LEHRER: Israel's incursion into Gaza is now into its second week. It was prompted by the capture of an Israeli soldier by Hamas militants. We'll have more on the Lebanon story right after this news summary.
The death toll in yesterday's train bombings in India rose to at least 200 today; the number of wounded climbed over 700. Eight blasts ripped through trains during rush hour yesterday in Mumbai, formerly known as Bombay.
Today, thousands of commuters returned to train travel, in spite of the bombings. No one has claimed responsibility for the attacks. We'll have more on this story later in the program tonight.
In Iraq today, gunmen abducted 24 people at a bus station northeast of Baghdad; 20 were killed; four were rescued by Iraqi soldiers.
And in Baghdad, seven Iraqis died when a suicide bomber hit a restaurant. The violence coincided with a visit by Defense Secretary Rumsfeld. He met with Iraqi leaders and the top U.S. general in Iraq.
Army General George Casey blamed death squads for the recent attacks in Baghdad. He said more U.S. troops might be needed.
The U.S. Army is ending its multi-billion-dollar relationship with the Halliburton company. The Army made the announcement today. The company provides logistical support to U.S. troops in Iraq; it was formerly run by Vice President Cheney.
Halliburton has been criticized for the quality and cost of services in Iraq. The Pentagon will re-bid the contract later this year and may split the work between three firms. Halliburton will be allowed to compete in the new bidding process.
Foreign ministers meeting in Paris today agreed to send the Iranian nuclear issue back to the U.N. Security Council. Secretary of State Rice met with her counterparts from France, Britain, Russia and China.
Along with German and European Union ministers, the group expressed "profound disappointment" in Iran's failure to answer a nuclear incentive package. Iran was given the proposal in early June, after demands it suspend uranium enrichment.
The French foreign minister made the announcement.
PHILIPPE DOUSTE-BLAZY, Foreign Minister, France (through translator): We have no choice but to return to the United Nations Security Council and to start again the process we suspended two months ago. We agree to work towards a resolution from the U.N. Security Council, making the suspension requested by the International Atomic Energy Agency.
JIM LEHRER: The U.S. and others wanted a response from Iran before the G-8 economic summit which begins on Friday.
China and Russia introduced a new resolution at the U.N. today over North Korea's missile tests. The draft strongly deplores the test-firing of seven missiles last week, but it dropped language from a rival Japanese proposal that could lead to military action.
In New York, U.S. Ambassador John Bolton welcomed Russia and China's engagement on the issue.
JOHN BOLTON, U.S. Ambassador to the United Nations: We wish that they had done this last week when the rest of the council was marking up the draft resolution that Japan and others had put forward. So this is a little bit late in the process, but in this case better late than never that the Russians and Chinese have come so far toward our position, and we're going to study this carefully.
JIM LEHRER: Bolton and the Japanese ambassador said they still planned to put the rival resolution to a vote. China had said it would veto the much stronger draft.
Columnist Robert Novak today revealed two of his three sources in the outing of a CIA officer. Novak said he confirmed Valerie Plame's position with White House aide Karl Rove and former CIA spokesman Bill Harlow, but he refused to publicly identify his original source.
The leak of Plame's identity triggered a three-year criminal investigation. It has resulted in one indictment, that of Lewis "Scooter" Libby, the vice president's former chief of staff.
The Food and Drug Administration approved a once-a-day pill to treat HIV today. It combines three of the most frequently prescribed AIDS drugs. It's called Atripla and can be swallowed as a single dose. It will be available in the United States within seven business days.
On Wall Street today, the Dow Jones Industrial Average lost 121 points to close at 11,013. The Nasdaq fell more than 38 points to close at 2,090.
