British Prime Minister Tony Blair has flown back to Britain today into a major row with a significant element within the Labour Party over his threat to use military action to topple Iraqi president Saddam Hussein.

Iraq and Iran today said oil should be used to put pressure on the US to force Israel out of Palestinian areas, but that all Muslim oil-producing countries needed to support the move.

Russia will present a proposal to the United Nations Security Council on July 3 for a new system of sanctions on Iraq - including a clear timetable for ending them, foreign minister Igor Ivanov said today.

The US stepped back into the Middle East conflict tonight and said it would help broker a peace deal if the violence stopped unconditionally.