Egypt named an interim prime minister on Tuesday and rich Gulf states poured in $8 billion in aid, as the biggest Arab nation sought ways out of a crisis a day after troops killed dozens of Islamists.
Egypt's new president may lack real foreign policy clout for now, but the mere fact that a Muslim Brotherhood man is at the helm of the biggest Arab nation will embolden fellow Islamists seeking revolutionary change around the Middle East.
Iran said on Monday it had successfully test-fired two long-range missiles during a naval exercise in the Gulf, flexing its military muscle to show it could hit Israel and U.S. bases in the region if attacked.
Defense Minister Ehud Barak played down Tuesday speculation that Israel intends to strike Iranian nuclear facilities, saying no decision had been made on embarking on a military operation.
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