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Separate attacks in northern Israel and in Jerusalem left at least 12 people dead and more than 30 injured Sunday. Hamas claimed responsibility for a suicide bombing that destroyed a bus near the town of Tsfat, which the militant group said was to avenge the killing of its military leader last month. Three hours after the blast, a Palestinian teenager opened fire in a Jerusalem market and was among three killed in a gun battle with police. An Israeli officer (left) stands over two Palestinians arrested during the incident. The Israeli government also suspended planned talks with Palestinian officials on easing tight security measures aimed to avert attacks, and the army destroyed nine West Bank homes belonging to Palestinians involved in previous deadly assaults on Israeli civilians.

North and South Korea agreed to hold cabinet-level talks next week in Seoul, in a major step toward reviving their stalled reconciliation process. The announcement followed a weekend meeting in North Korea's Mount Kumgang resort, the first contact between the rival states in four months. South Korea's Unification Ministry said in a statement that Pyongyang had repeated its "regret" over a naval battle in June that left 18 dead and strained relations.

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Nationalist Action Party leader Devlet Bahceli vowed to try to overturn reforms such as abolishing Turkey's death penalty and granting minority Kurds the right to teach and broadcast in their own language, during a weekend campaign rally ahead of Nov. 3 elections. The reforms are part of a package needed to win entry into the European Union. Bahceli, whose party has the most seats in parliament but not a majority, is a deputy prime minister in the current government.

Lawmakers in Uruguay were rushing to pass legislation designed to shore up the nation's shaken banking system, by limiting withdrawals on deposits made in US dollars. Approval was one of the conditions for an emergency aid package from the International Monetary Fund. US Treasury Secretary O'Neill is visiting Uruguay, Argentina, and Brazil this week to discuss the expanding financial crisis in South America.

Hospital officials in northwest England said they had confirmed 45 cases of Legionnaire's disease, and more than 70 people were receiving treatment in the biggest outbreak in Britain in 17 years. An elderly man diagnosed with the ailment died Friday in Barrow-in-Furness. The region's public health director said the suspected source of the illness – an air conditioner at an entertainment center – had been shut down.