Reuters World News Highlights

MOSCOW – Chechen rebels claimed responsibility yesterday  for a Siberian dam disaster as part of an economic war against  Russia, but the Kremlin dismissed the claim and financial  markets ignored it.

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VIENNA – Iran has let U.N. inspectors access a nuclear  reactor under construction after blocking visits for a year,  and allowed better monitoring at another, but the moves were  greeted with scepticism by the West.

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TEHRAN – A hardline Iranian cleric called yesterday for the  arrest of leaders of post-election unrest in what appeared to  be a reference to defeated moderate presidential candidates  Mirhossein Mousavi and Mehdi Karoubi.

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WASHINGTON – The Obama administration will raise its  10-year budget deficit projection to approximately $9 trillion  from $7.108 trillion in a report next week, a senior  administration official told Reuters on Friday.

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BAGHDAD – Senior Iraqi officials called yesterday for a  thorough review of their security forces, improved intelligence  gathering and tougher treatment of terrorism suspects and  detainees after massive truck bombings in Baghdad.

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SEOUL – North Korean officials sent by leader Kim Jong-il  arrived in the South yesterday to mourn former President Kim  Dae-jung in a move that may signal a warming of ties between  the rival states.

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LONDON/WASHINGTON – The United States and Britain yesterday  condemned a “hero’s welcome” given to the newly released  Lockerbie bomber, with London scrambling to stem fallout from  the decision to free him on humanitarian grounds.