In an upbeat and optimistic video blog, Russian President Dmitry Medvedev says that, after a period in which Russian-U.S. relations "declined to a level practically on a par with the Cold War era," Russia is "ready to play our part" to build a better relationship.

Israeli Prime Minister Benjamin Netanyahu endorsed a Palestinian state beside Israel for the first time on Sunday, reversing himself under U.S. pressure but attaching conditions such as having no army that the Palestinians swiftly rejected.

A week after President Barack Obama's address to the Muslim world, Netanyahu said the Palestinian state would also have to recognize Israel as the Jewish state -- essentially saying Palestinian refugees must give up the goal of returning to Israel.

Iran is bracing for more protests over its presidential election results after defeated candidate Mir Hossein Mousavi called for it to be annulled.  His supporters are reported to be planning a rally after two days of unrest sparked by the re-election of President Mahmoud Ahmadinejad.