U.S. Defense Dep't. says threat of Iraqi attack on Israel is "very realistic" and that American intelligence analysts believe Iraq would use chemical weapons against coalition forces in event of war [NYT 12/27]; Israel signals it will not launch first strike against Iraq [WP 12/27] and asserts it has no aggressive intentions toward Jordan [JPI 1/5].
Iraqi cargo ship carrying tons of food bound for Iraq is seized by U.S. and Australian soldiers after having to use stun grenades to subdue crew members; Baghdad protests to UN [NYT, LAT, WT, WP 12/27].
U.S. orders dependents of American diplomats out of Jordan and Sudan "well before 15 January" because of fears of anti-U.S. violence (cf. 1/3) [WT, WP 12/27].
Iran's spiritual leader Ayatollah Ali Khamenei rules death sentence against author Salman Rushdie still stands, despite Rushdie's 12/24 statement [LAT, WT, CSM 12/27].
3 Jewish militants are freed after serving less than 7 years of their life sentences for killing 3 Arabs and maiming 2 Palestinian mayors in early 1980s car bombings. Jewish Underground members Menachem Livni, Shaul Nir, and Uzi Sharbav are greeted as heroes by Jewish settlers [JDS 12/26 in FBIS 12/26; NYT, LAT, WP, CSM 12/27; FJ 12/31; JPI 1/5].
Gaza youth is shot dead by IDF after reportedly attacking soldier with knife [JDS 12/26 in FBIS 12/26].