Hamas rocket hits Israeli house

Israeli children huddle in a bomb shelter in town of Sderot

Fires in Gaza from Israeli air attacks against Hamas rocket launchers

Israeli bombs hit Hamas missile launchers

UPDATED: Latest headlines

• Israel continues to pound Gaza as Hamas fires 150 rockets at Israel in last 48 hours
• In response to Gaza raids, Hamas threatens to assassinate Livni, Barak
• Russia asks Israel to end Gaza attacks, let in aid
• Israelis target Hamas smuggling tunnels
• Israeli Cabinet approves call up of reserves
• Nasrallah: Israel could take this opportunity to attack Lebanon
• Israelis in the North prepare for possible attacks from Hezbollah
• Ahmadinejad Urges Muslim States To Punish Israel Over Gaza
• Iran orders all Muslims to defend Palestinians against Israeli raids in Gaza
• Analysis: Don’t forget the Iranian connection
• Fear of rockets sends Israeli hospital underground (this is a story about the Barzilai Medical Center in Ashkelon that The Joshua Fund has been assisting in purchasing much-needed medical equipment)

KEEP AN EYE ON RUSSIA:

• Russian stock markets down 65-70%
• Russian Finance Minister: 2009 will be the worst for the Russian economy since the World War-II
• Russia eyes trade rise with Iran in 2009: “Russia is planning to sign new agreements with Iran to boost the two-way trade in 2009, Russian Economy Ministry Trade Negotiations Department Director Maxim Medvedkov stated on Thursday.”
• Russia is bracing for further unrest as the rouble on Friday slid to a new low against the euro after a succession of moves to devalue its currency: Mikhail Gorbachev, the former Soviet leader, warned Russia faced “unprecedentedly difficult and dangerous circumstances” and could be “heading into a black hole”. “It is not clear what the fate of our rouble will be or if society has sufficient financial and moral resources,” he said.