Saudi Arabia brokers new truce in Yemen: Saudi source (Reuters)

SANAA (Reuters) – Saudi Arabia has brokered a fresh truce between a powerful Yemeni tribal federation and forces loyal to President Ali Abdullah Saleh, a Saudi source said on Saturday, and a tribal leader said his followers were abiding by it.

A Saudi-brokered truce agreed a week ago held for only a day before fresh street battles broke out in the capital Sanaa, leading to the most intense fighting there since the uprising against Saleh's 32-year role began.

Broadcasters Al Jazeera and Al Arabiya, citing Yemeni and Saudi sources, said Saleh was on his way to Saudi Arabia for medical treatment, a day after suffering head wounds in a shelling attack on a mosque in the presidential compound, but Yemen's deputy information minister denied the reports.

Seven people were killed when what appeared to be rockets hit the presidential palace and several government officials were wounded. Saleh blamed a tribal federation for the assault.

"The rocket was devastating. It was a clear assassination attempt against the president," said Abdulla Ali al-Radhi, Yemen's ambassador to the United Kingdom.

The BBC reported that the attack left Saleh with shrapnel near his heart and second-degree burns to his chest and face. It said sources close to the president had told the broadcaster Saleh had a piece of shrapnel almost 7.6 cm long under his heart.

Four months into a deadly revolt, worries are mounting that Yemen, already on the brink of financial ruin and home to al Qaeda militants, could become a failed state that poses a threat to the world's top oil exporting region and to global security.

Saleh's forces retaliated by shelling the homes of the leaders of the Hashed tribal federation, which has been engaged in street fights with his forces. Spokesmen for the group said 10 tribesmen were killed and dozens injured while denying responsibility for the palace attack.

A growing number of people in Saleh's inner circle feel the attack may have carried out by General Ali Mohsen who has broken from Saleh, sided with the protesters and called the president a "madman who is thirsty for more bloodshed."

An expert on Yemen with close ties to Sanaa's leadership said: "Nobody could have done this with such military precision other than a military man."

Global powers have been pressing Saleh to sign a Gulf-brokered deal to end his 33-year rule. Leaving Yemen, even for medical care, would make it hard for Saleh to retain power and could be seen as the first step in a transfer of leadership.

A Yemeni official told Reuters that Saleh "had suffered minor wounds to his head and I believe his face."

"It's not easy for the president. He has lost people close to him and who were sitting next to him when it happened," the official said.

Saleh has exasperated his former U.S. and Saudi allies, who once saw him as a key partner in efforts to combat Yemen-based al Qaeda in the Arabian Peninsula (AQAP).

Defying world pressure, Saleh has thrice reneged on a deal brokered by Gulf states for him to quit in return for immunity from prosecution, even as he haemorrhages support at home.

'BULLETS EVERYWHERE'

Residents in Sanaa faced worsening fears after fighting between the Hashed tribal federation and Saleh's forces spread to new parts of the divided capital on Friday, prompting a fresh exodus of war-weary civilians.

Tensions in the flashpoint of Taiz, about 200 km (120 miles) south, eased after police and military units withdrew from the city following a week of clashes with pro-reform demonstrators that left dozens dead.

The U.N. human rights chief was checking reports that more than 50 people had been killed in Taiz since Sunday.

Nearly 200 people have been killed in the capital in the past two weeks as street battles using machineguns, mortars and rocket propelled grenades shuttered shops and forced Sanaa's airport to ground flights twice.

Sanaa roads were clogged when the sun rose by civilians fleeing violence that has engulfed more of the city.

"Bullets are everywhere, explosions terrified us. There's no chance to stay any more," said Sanaa resident Ali Ahmed.

Spain said it was evacuating its citizens and diplomats in Yemen, while Germany ordered the temporary closure of its embassy, adding to the number of countries shutting the doors on their diplomatic missions in Sanaa due to the fighting.

At least 420 people have been killed since the uprising against Saleh began in January, inspired by the movements in Tunisia and Egypt that toppled their long-standing leaders.

The battles are being fought on several fronts, with popular protests in several cities and military units breaking away from Saleh to protect the protesters.

There has also been a week-long campaign in Zinjibar by locals and Saleh's soldiers to oust Islamist and al Qaeda militants who seized the southern coastal city near a shipping lane where about 3 million barrels of oil pass daily.

(Additional reporting by Mohammed al-Ramahi in Sanaa, Mohammed Mukhashaf in Aden, Khaled al-Mahdi in Taiz, Mahmoud Habboush in Dubai, Samia Nakhoul in London, Erik Kirschbaum in Berlin and the Madrid bureau; writing by Jon Herskovitz; editing by Tim Paerce)

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Truce in Yemen halts week of deadly clashes (Reuters)

SANAA (Reuters) – A sense of calm returned to Yemen's embattled capital on Sunday hours after armed tribesman and President Ali Abdullah Saleh's forces reached a truce to halt clashes threatening to plunge the state into civil war.

Pedestrians and cars returned to Sanaa streets where pitched battles in nearly a week of fighting killed at least 115 and raised global worries over the impoverished country perched next to a crucial shipping lane through which about 3 million barrels of oil pass daily.

The latest violence, pitting Saleh's forces against members of the powerful Hashed tribe led by Sadeq al-Ahmar, was the bloodiest since pro-democracy unrest erupted in January and was sparked by Saleh's refusal to sign a separate power transfer deal.

The ceasefire deal included a withdrawal of armed tribesmen from government buildings and moves to normalize life in the Hasaba district of Sanaa, where fighting with machine guns, rocket propelled grenades and mortars led thousands of residents to flee the city for their safety.

Despite the truce, analysts are concerned fighting could flare again given the animosity between the groups and growing popular anger at Saleh for not ending his nearly 33-year-long rule which has brought the country near financial ruin.

The truce also extends to areas outside of Sanaa where tribesmen have clashed with the president's Republican Guards and air force fighters have strafed armed tribesman with bombs.

The political crisis has already cost the economy as much as $5 billion and immediate aid is needed to prevent a meltdown in the country with a nominal GDP of $31 billion, Yemen's trade minister told Reuters on Saturday.

TRIBAL RIVALRIES

The United States is concerned that tribal rivalries are complicating efforts to reach a power transfer deal and believes al Qaeda is trying to exploit instability there, senior U.S. officials said on Saturday.

"Tribal as well as extremist elements are attempting to exploit the current instability in order to advance their own parochial interests," one official said.

International negotiators have become exasperated with Saleh, saying he had repeatedly imposed new conditions each time a Gulf-led transition agreement was due for signing, most recently demanding a public signing ceremony.

Nearly 300 people have died over the past months as the president has tried to stop pro-reform protests by force.

But global powers have little leverage to influence events in Yemen, where tribal allegiances are the most powerful element in a volatile social fabric and the fighting already appears to be playing out along tribal, quasi-feudal lines.

A growing concern for the outside world is that the Yemen-based al Qaeda in the Arabian Peninsula (AQAP) will exploit the political instability to build on its proven talent for daring and inventive bombing plots, analysts said.

The United States and Saudi Arabia, both targets of foiled attacks by the AQAP, are worried growing chaos could embolden the militant group.

In the south, dozens of armed men believed to be from al Qaeda appeared on Saturday to have full control of city of Zinjibar in the flashpoint province of Abyan.

Also in southern Yemen, three French aid workers went missing and a local security official said on Saturday they were believed to have been abducted.

Kidnappings of Western tourists or workers by disgruntled tribes seeking ransom or concessions from the government have been frequent in Yemen. Most hostages have been freed unharmed.

(Additional reporting by Mohammed Ghobari in Sanaa, Mohammed Mukhashaf in Aden and Helen Massy-Beresford in Paris; Writing by Jon Herskovitz and Firouz Sedarat in Dubai; Editing by Jon Hemming)

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Gadhafi offers truce as NATO strikes in Tripoli

TRIPOLI, Libya (AP) — Libyan leader Moammar Gadhafi called for a cease-fire and negotiations with NATO powers in a live speech on state TV early Saturday, just as NATO bombs struck a government complex in the Libyan capital.

In this photo made on a government-organized tour, an official building is damaged after an airstrike early Saturday in Tripoli, Libya.

By Darko Bandic, AP

In this photo made on a government-organized tour, an official building is damaged after an airstrike early Saturday in Tripoli, Libya.

In Brussels, a NATO official said the alliance needed "to see not words but actions," and that NATO would keep up the pressure until the U.N. Security Council mandate on Libya is fulfilled.

The targeted compound included the state television building and the Libyans alleged the strikes were meant to kill Gadhafi. However, the TV building was not damaged and Gadhafi spoke from an undisclosed location.

In his rambling pre-dawn speech which lasted for more than an hour, Gadhafi appeared both subdued and defiant, repeatedly pausing as he flipped through handwritten notes.

"The door to peace is open," Gadhafi said, sitting behind a desk. "You are the aggressors. We will negotiate with you. Come, France, Italy, U.K., America, come, we will negotiate with you. Why are you attacking us?"

He said Libyans have the right to choose their own political system, but not under the threat of NATO bombings.

Rebel leaders have said they will only lay down their arms and begin talks on Libya's future after Gadhafi and his sons, some of whom hold powerful positions in the country, step aside. Gadhafi has repeatedly refused to resign.

"Why are you killing our children? Why are you destroying our infrastructure," Gadhafi said, while denying that his forces had killed Libyan civilians. Even as he called for a cease-fire, he appeared to dismiss the possibility of one, saying his enemies were al-Qaida operatives who did not understand what a truce meant.

He promised the young rebels fighting his regime that if they gave up their guns, he would give them cars and money, saying they were children "tricked" by NATO promises.

The U.N. official however noted that just hours before Gadhafi's talk of a truce, he had shelled Misrata and tried to mine the port. The city of 300,000 is the main rebel stronghold in western Libya and has been under siege for two months.

"The regime has announced cease-fires several times before and continued attacking cities and civilians," said the official who could not be named under standing regulations. "All this has to stop, and it has to stop now," the official said, adding that a ceasefire had to be "credible and verifiable."

Earlier this month, NATO's foreign ministers said the alliance will continue operations until all attacks and threats against civilians have ceased, until all of Gadhafi's forces have returned to bases, and until there is full humanitarian access.

The port is Misrata's only lifeline. On Friday, NATO intercepted boats laying anti-ship mines in the nearby waters.

The regime signaled Friday that it is trying to block access to Misrata by sea.

Moussa Ibrahim, the Libyan government spokesman, said he was unaware of the attempted mine-laying. However, he said the government is trying to prevent weapons shipments from reaching the rebels by sea. Asked whether aid vessels would also be blocked, he said any aid shipments must be coordinated with the authorities and should preferably come overland.

Gadhafi's forces have repeatedly shelled the port area and his ground troops are deployed on the outskirts of Misrata, after having been driven out of the downtown area by the rebels last week.

On Saturday, heavy fighting continued in the southern part of the city near the airport and frequent large booms could be heard in downtown from that part of town.

Hassan al-Bari, 21, who lay in the hospital screaming from pain from a three inch gash on his cheeks, said Gadhafi's forces were just outside the airport. He was wounded in a mortar strike there.

The hospital contained two dead and four injured from fighting.

With the rebels holding much of eastern Libya, Gadhafi needs to consolidate his hold over the western half, including Misrata and a mountainous region on the border with Tunisia.

On Friday, fighting between rebels and regime loyalists over a key border crossing spilled over into Tunisia, drawing a sharp rebuke by Tunisian authorities. The Foreign Ministry summoned Libya's ambassador to convey its "most vigorous protests" for the "serious violations" at the Dhuheiba border area Thursday and Friday, a ministry statement said.

The crossing is a strategic lifeline for Libya's western Nafusa mountain area where members of the ethnic Berber minority ? who have complained of systematic discrimination by the regime ? have been fighting the Gadhafi's forces for several weeks.

The Tunisian news agency, citing military officials, said dozens of Libyan troops and rebel fighters were killed in the two-day battle over the Dhuheiba crossing which ended with rebels regaining control Friday, after Libyan forces held it for a day.

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