Reuters World News Highlights

ATLANTA – President Barack Obama vowed yesterday to make  good on his promise to end U.S. combat operations in Iraq by the  end of August, despite a dangerous political deadlock in Baghdad  and a recent surge in militant violence.

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WASHINGTON – A U.S. judge ruled yesterday that the state of  Virginia could proceed with its challenge to President Barack  Obama’s landmark healthcare law, a setback that will force the  White House to defend its reforms in the middle of a tough  congressional election campaign.

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WASHINGTON – President Barack Obama said in an interview  aired yesterday that the U.S. economy must grow faster and that  unemployment is a “huge problem.”

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AQABA, Jordan – Rockets from Egypt’s Sinai, where Islamist  militants have operated in the past, hit Israel’s and Jordan’s  Red Sea port resorts yesterday, killing a Jordanian civilian and  injuring three others, Jordanian and Israeli police said.

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PARIS – French President Nicolas Sarkozy urged his Pakistani  counterpart Asif Ali Zardari yesterday to step up his country’s  fight against terrorism, during a visit overshadowed by a spat  between Pakistan and Britain.

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NOWSHERA, Pakistan – Islamist charities, some with suspected  ties to militants, stepped in yesterday to provide aid for  Pakistanis hit by the worst flooding in memory, piling pressure  on a government criticised for its response to the disaster that  has so far killed more than 1,000 people.

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JOHANNESBURG – Thousands of South African public service  employees seeking higher wages have rejected a government salary  offer, setting the stage for nearly 1 million workers to walk  off the job this week.

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ATHENS – Greek Prime Minister George Papandreou’s victory  against striking truck drivers will strengthen his resolve to  confront trade unions opposed to the deep cuts he promised in  return for an EU/IMF bailout.

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BAGHDAD – Saudi Arabia wants to play a bigger role in Iraq  to counter Iran’s growing influence during a political stalemate  in Baghdad, and to help Saudi companies to catch up with  regional rivals in opening up the Iraqi market.

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MOSCOW – Wheat prices rose to 22-month highs yesterday as  the worst drought in 130 years in major exporter Russia  threatened to chop production, while a key lobby group cut its  forecast for the country’s 2010 grain harvest.

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YANGON – A new political party in Myanmar says it will offer  a democratic alternative to military proxies in upcoming  elections after breaking with democracy figurehead Aung San Suu  Kyi, whose party refused to take part.