Reuters - Iran is heading toward a major breakthrough in its nuclear program, an Israeli official said on Friday, as the White House warned Iran could face new sanctions if it ignores an international freeze offer.

Reuters - The accused mastermind of the September 11 attacks told a U.S. war crimes court at Guantanamo on Friday that Osama bin Laden's driver had no role in al Qaeda attacks and was unfit to carry them out.

Reuters - It really is the economy, stupid! Economic models that have correctly predicted the winner of almost all post-war U.S. presidential elections say recession fears will secure a victory for Barack Obama in November.

Reuters - The U.S. unemployment rate hit its highest level in four years during July as employers cut jobs for a seventh straight month, though less severely than predicted, a Labor Department report showed on Friday.

AP - People has scored the photos of Brad Pitt and Angelina Jolie's newborn twins, the second time the celebrity magazine won the North American rights to the couple's exclusive baby pictures in exchange for a hefty donation to charity.

AP - Finally, China had an act of nature it could celebrate. After an Olympic year of freakish natural disasters, crowds of Chinese watched a total solar eclipse along the country's ancient Silk Road on Friday, one week before the start of the Summer Games in Beijing.

AP - A divided Federal Communications Commission has ruled that Comcast Corp. violated federal policy when it blocked Internet traffic for some subscribers and has ordered the cable giant to change the way it manages its network.

AP - Republican presidential candidate John McCain is warning an influential black organization that rival Barack Obama's ideas are not always as impressive as his rhetoric.

AP - Democratic presidential candidate Barack Obama on Friday pushed for a windfall profits tax to fund $1,000 emergency rebate checks for consumers besieged by high energy costs, a counter to Republican rival John McCain's call for more offshore drilling in coastal states like Florida.

AP - An Army scientist committed suicide before federal prosecutors could charge him with mailing anthrax-laced letters in the weeks following the Sept. 11 terror attacks. Authorities said Friday the letters may have been part of a warped plan to test his vaccine for the deadly poison.

AP - Lawmakers sped for the exits Friday as Congress was to begin a five-week recess after a summer session noteworthy for bitter partisanship and paralysis on the issue topmost in the minds of many voters: the cost of gasoline.

AP - General Motors Corp. posted a $15.5 billion second-quarter loss Friday, the third-worst quarterly performance in the company's nearly 100-year history.

AP - The nation's unemployment rate climbed to a four-year high of 5.7 percent in July as employers cut 51,000 jobs, dashing the hopes of an influx of young people looking for summer work.

AFP - Japan's embattled Prime Minister Yasuo Fukuda was reshuffling his cabinet on Friday in a last-ditch bid to revive waning public support as elections loom against a rising opposition.