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As sectarian killings surge in Iraq, the Baghdad morgue has also become a deadly place. Sunni families risk being killed when they go to retrieve the bodies of loved ones from the Shiite-run facility. The morgue is now off-limits to journalists.

The FBI has been tracking Hezbollah fundraising in the United States for years. But there is debate within law enforcement circles over whether the group would launch attacks on U.S. soil.

As the Mideast crisis continues to intensify, the head of Lebanon's militant group Hezbollah declares "open war," and Israel says it will not stop its military campaign until Hezbollah is disarmed.

The European Union fines Microsoft more than $350 million for defying a 2004 antitrust ruling. The EU warned the company it could face even bigger penalties from the start of August. European regulators want the software giant to provide technical information to rivals after it found Microsoft abused the dominance of its Windows operating system.

Russia's gas monopoly Gazprom halts natural gas sales to Ukraine, after Kiev refuses to agree to a four-fold price hike. The move has affected the flow of gas to other European countries and raised worries about Russia's use of energy as a political weapon.

I. Lewis "Scooter" Libby, the most powerful aide to the most powerful vice president in the nation's history, is indicted by a federal grand jury. The news further rocks a White House struggling with a variety of second-term problems.

A federal appeals court rules that the Environmental Protection Agency acted illegally when it issued new air-pollution rules for power plants and factories. The three-judge panel says the rules allowing plants to modernize without installing pollution-control equipment violated the Clean Air Act.

The head of New Orleans' police department, Eddie Compass, has resigned. This weekend, he announced that 249 officers, or about 15 percent of the force, are absent without leave after the hurricanes. A special tribunal will determine who has deserted and who has legitimate absences from work.

Secretary of State Condoleezza Rice visits Islamabad, Pakistan, to assess the country's earthquake-relief needs. Already, the United States has sent planes and helicopters to help in rescue-and-relief operations. She also visited Kabul, meeting with Afghan leaders.

A Palestinian suicide bomber strikes at a fast-food restaurant in Tel Aviv, Israel. The attack kills the bomber and nine others, wounding dozens. Israel is marking the Passover holiday. It is the first suicide attack since Hamas took control of the Palestinian government.