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To: Sully- who wrote (49382)4/2/2002 7:24:01 PM
From: stockman_scott  Read Replies (1) | Respond to of 65232
 
Israel Seizes Control of Bethlehem

Tue Apr 2, 6:55 PM ET
By LAURA KING, AP Special Correspondent

RAMALLAH, West Bank (AP) - Israel seized control of Bethlehem and another West Bank town Tuesday in a day of wild fighting that left at least 13 Palestinians dead. Palestinian gunmen forced their way into the Church of the Nativity, where tradition says Jesus was born, and Israeli tanks and helicopters pounded the headquarters of a Palestinian security chief.

Amid what has become the fiercest Israeli offensive in 18 months of conflict, Palestinian leader Yasser Arafat (news - web sites) angrily rejected an Israeli offer to free him from confinement in his compound in the West Bank town of Ramallah — provided he goes into exile. Arafat spent a fifth straight day pinned down by Israeli troops and tanks, his compound now ringed by barbed wire.

Israeli troops pressed ahead with house-to-house searches for Palestinian militants and weapons as part of what Israel calls "Operation Protective Wall" — aimed at halting terror attacks targeting Israelis.

In the seventh such attack in as many days, a Palestinian man blew himself up Tuesday night when security forces stopped him at a checkpoint in Baka al-Sharkiyeh, a Palestinian village along the line between Israel and the West Bank. The man detonated explosives strapped around his body, killing himself but not injuring others, the military said.

In a dramatic gesture that underscored hardships caused by the Israeli incursion, Palestinians buried 15 of their dead in a hospital parking lot in Ramallah. Families of the dead had been unable to claim the bodies, which were decomposing in a hospital morgue because power cuts made refrigeration impossible. Relatives wailed and gunfire from fighting echoed as the bodies were placed in common graves carved out by a bulldozer — one for 13 men, one for two women.

Ramallah residents, though, got a respite of a few hours from a curfew that has been in effect since Israeli tanks and troops moved in on Friday. People poured into the shops, lugging away canisters of cooking oil and plastic bags bulging with pita bread. Canned goods were popular, as many people have no electricity and perishable food has been rotting in refrigerators.

By nightfall, most of the about 400 Palestinians trapped in the compound of West Bank security chief Jibril Rajoub near Ramallah had surrendered to Israeli troops, in a deal brokered by U.S. and European officials. About eight men remained inside. The sprawling compound was battered by the Israeli onslaught, with gaping holes punched in rooftops and building facades by shellfire and rockets.

Holy places were not immune from violence that raged the length and breadth of the West Bank. Dozens of armed Palestinians were holed up inside the Church of the Nativity in Bethlehem, which is built over the grotto where tradition says Jesus was born. About 20 of the gunmen were wounded and being tended to by nuns, according to witnesses trapped in the church compound.

The armed men, some of them Palestinian policemen, forced their way into the church after running battles with Israeli troops firing from helicopter gunships and from tank-mounted machine guns. At nightfall, the bodies of four gunmen lay sprawled just off Manger Square, where the church is located.

As the fighting intensified, Prime Minister Ariel Sharon (news - web sites) proposed publicly for the first time that diplomats fly Arafat into exile. Sharon noted such a move would require Cabinet approval, but the Palestinians rejected the offer out of hand.

The Palestinian leader denounced the suggestion, saying he would rather be a "martyr" than go into exile.

Throughout the conflict, much has been made of Sharon and Arafat's bitter personal enmity, which many observers see as a driving force behind the fighting. "These two people...have lived this conflict for a very long time — too long if you ask me," European Union (news - web sites) security chief Javier Solana said.

Battles have been raging almost around the clock, and Tuesday was no exception. Tanks rolled into the West Bank towns of Tulkarem and Bethlehem before dawn, and the assault on the headquarters of Rajoub, in the West Bank village of Beitunia, also came in the pre-dawn hours.

Israeli Foreign Minister Shimon Peres said the offensive would last three to four weeks, the first senior Israeli official to give a time frame. However, Sharon has said the campaign was open-ended.

In Washington, Secretary of State Colin Powell (news - web sites) said Israel should end the campaign quickly, but suggested the United States would not insist on an immediate Israeli withdrawal. "I would guess it will take them (the Israelis) a couple of weeks" to conclude the mission, Powell said on NBC's "Today" show. Powell expressed opposition to expelling Arafat. "Until he decides he's going to leave the country, it seems we need to work with him where he is."

Powell also spoke to Jordanian Prime Minister Ali Abul-Ragheb, who told him that Israeli aggression was threatening the stability of the region, the Petra news agency said.

The State Department, citing a "deteriorating security situation," warned Americans to defer travel to Israel, the West Bank and Gaza and said dependents of American diplomats in Jerusalem were being encouraged to go home. Similar warnings to Americans to stay away from Israel were issued in December and January. Americans living in Jerusalem, the West Bank and in Gaza were advised to consider relocating.

Mass roundups of Palestinian men ranging from their mid-teens to their mid-40s continued Tuesday — a tactic denounced by Palestinians as collective punishment, but defended by Israel as a legitimate means of hunting down wanted men. About 700 suspects have been rounded up since Friday in Ramallah, according to the army spokesman, Brig. Gen. Ron Kitrey.

Palestinian civilians have mainly tried to stay out of harm's way by huddling inside their homes, and the streets proved deadly dangerous again Tuesday. A 56-year-old Palestinian woman was fatally shot on her way home from Ramallah Hospital, apparently by an Israeli sniper, doctors said. She had gone to the hospital to have a plaster cast removed from her leg, they said.

Lately, each day of fighting has brought some first. The forces of Rajoub, who formerly had close links to U.S. intelligence, had not previously come under Israeli attack. Until now, the fighting had not spilled over into the Church of the Nativity, one of Christianity's holiest shrines.

Israeli forces have entered Bethlehem several times during the past 18 months, but they are under orders not to harm holy places, and have kept their distance from the church. That, however, makes it an attractive sanctuary for Palestinian gunmen.

There was also a heavy exchange of fire outside the Santa Maria Convent in Bethlehem run by the Salesians, a Roman Catholic order. Near the convent, 64-year-old Samieh Abdeh and her 38-year-old son Khaled were wounded by Israeli fire at their home, Abdeh's son Sami said. Israeli troops prevented ambulances from reaching the home, and the two bled to death, Sami Abdeh said.

In an appeal to President Bush (news - web sites), leaders of Christian denominations in the area asked to "stop immediately the inhuman tragedy that is taking place in this Holy Land in our Palestinian towns and villages."

Also Tuesday, two Israelis died of wounds sustained in last week's suicide bombing during a Passover banquet in an Israeli hotel. That brought the total number of victims to 24, making it the deadliest Palestinian attack in 18 months of fighting.



To: Sully- who wrote (49382)4/3/2002 7:34:21 AM
From: stockman_scott  Respond to of 65232
 
Crude Oil Prices at a 6-Month High on Mideast Worries

By NEELA BANERJEE
Associated Press
April 3, 2002

Gasoline prices heading toward $2 a gallon were seen on Tuesday in San Francisco. Across the country, the average price of a gallon of regular unleaded gasoline was $1.37, up about 20 percent in the last month, amid market talk of supply cutoff risks.

The price of crude oil climbed to the highest level in six months yesterday, nearly $28 a barrel, stoked by fears that the worsening violence in the Middle East could lead to a disruption of oil supplies.

But most industry analysts discounted the chances of an embargo by oil-producing countries or a terrorist attack against their oil operations. They pointed out that yesterday's rise in commodity prices was building on a gradual but substantial run-up in oil prices that started at the beginning of the year, mainly because of reductions in output that the Organization of the Petroleum Exporting Countries began in 2001.

The more expensive crude oil has pushed up retail gasoline prices by about 20 percent over the last month. The average price of a gallon of regular unleaded gasoline is now $1.37 nationwide, compared with $1.14 on March 4, based on data from the Energy Information Administration, the analysis arm of the Energy Department. Industry analysts warned that the greater demand for gasoline that usually arrives with warmer weather could raise prices further in coming months.

On the New York Mercantile Exchange yesterday, the price of crude oil for May delivery settled at $27.71 a barrel, up 3.1 percent from $26.88 a barrel late Monday. Nervousness in the market increased as OPEC members issued conflicting messages about what nations in the Middle East might do in response to the Israeli-Palestinian violence.

A statement in Baghdad yesterday from the Iraqi foreign ministry said Iraq was ready to "use oil as a weapon" against the United States for its support of Israel.

But the Saudi foreign minister, Prince Saud al-Faisal, said Arab countries relied too heavily on oil revenue to forsake the money in a Mideast political struggle. Prince Saud was quoted in Le Monde as saying, "If they want to strengthen themselves against the Israeli aggression, they have no alternative but to continue exploiting oil and gas."

Intensifying violence in the Middle East has in the past led to higher prices, oil industry experts noted, but once oil traders recognize that the situation is more stable than news reports might indicate, prices usually drift down. By some views, relations between the United States and Arab countries are more resilient than they were in 1973, during the first Arab oil embargo, and there are more sources of oil beyond the Middle East now.

"An oil embargo is unlikely," said Lord Browne, the chief executive of BP, in an interview in his New York office yesterday. "There is so much surplus capacity, the shortfall would come from somewhere else. There is no great cause for concern."

Still, some analysts said the oil markets would remain volatile when Middle East fighting worsened. "In the absence of any lasting solution to the conflict, there will be a knee-jerk reaction in the markets every time there is an escalation between the Israelis and the Palestinians," said Raad Alkadiri, manager of country risk analysis at the Petroleum Finance Company, a consulting firm in Washington.

Crude oil prices have climbed about 40 percent since January as a result of OPEC's decision last year to cut production by about five million barrels a day. But OPEC members routinely produce more than their formal quotas, and non-OPEC countries that agreed to the cuts, most notably Russia, have also kept exports high.

The supply of crude oil on world markets was pared after Iraq's exports fell in the first quarter, to a range of 1.3 million to 1.7 million barrels a day, from 2 million to 2.2 million barrels last year, Mr. Alkadiri said.

In June, when a United States economic recovery is expected to be in full swing and oil demand is growing, prices are likely to rise and OPEC will face pressure to increase production. But if the Mideast turmoil worsens, OPEC could seize the opportunity at its June meeting in Vienna to demonstrate its anger over American Mideast policies.

"If the situation is still festering," Mr. Alkadiri said, "and the perception is that the international community has done nothing and let the Israelis run riot, there is an outside chance that OPEC could say the high price of oil is not a product of supply constraints and so there is no need to increase output formally. That would be a very, very tough signal to the U.S. in particular. But we're a long way from that."