Indian police have charged a journalist with conspiring to carry out a bomb attack on an Israeli diplomat in New Delhi in February, a senior police official told Agence France Presse Wednesday.

Syed Kazmi, a freelance journalist who worked part-time with Iran's IRNA news agency, is accused of helping a group of Iranians to plan and execute the attack which saw a man on a motorbike attach a magnetic bomb to an Israeli embassy car.

U.S. Defense Secretary Leon Panetta said Wednesday that Iran must either negotiate acceptable limits on its nuclear program or face the possibility of U.S. military action to stop it from getting the bomb.

Panetta made his remarks outside the city of Ashkelon in southern Israel, with an "Iron Dome" anti-rocket defense system as a backdrop.

Bulgarian police on Wednesday released a composite picture of the man they think blew himself up on a bus packed with Israelis, killing six people last month in the Black Sea resort of Burgas.

The computer-generated picture shows a young man with fair skin, light-colored eyes, a high forehead and short dark brown hair.

Egypt's President Mohammed Morsi has not sent a letter to his Israeli counterpart Shimon Peres, state media reported on Wednesday.

The Israeli president's office had said on Tuesday that the Islamist leader wrote to Peres pledging to revive the Israeli-Palestinian peace talks.

Israeli troops engaged in a brief exchange of fire with unidentified gunmen across the southern border with the lawless Egyptian Sinai Peninsula on Wednesday, a military spokeswoman said.

No-one was wounded in the exchange which took place shortly after troops arrested three "suspected infiltrators" sneaking across the frontier, she said.

A militant with the armed wing of Gaza's ruling Hamas movement died in Gaza City on Wednesday after the car he was travelling in exploded, Palestinian medical sources said.

There was no accusation against Israel, prompting suspicions it was a "work accident" -- the euphemism for the accidental detonation of explosives held by militants.

A wheelchair-bound Israeli who set himself alight over the spiraling cost of living died of his injuries, medics said on Wednesday, raising to two the number of Israelis who have died in such protests.

A spokesman for Tel HaShomer hospital near Tel Aviv said Akiva Mafi, 45, died of injuries sustained on July 22, in a development two days after the government voted through a harsh package of austerity measures likely to further hit the underprivileged.

Iran is the "pre-eminent" state sponsor of terrorism and together with Hizbullah are pursuing increasingly destabilizing activities around the world since the 1990s, the U.S. State Department's counterterrorism coordinator, Daniel Benjamin, said Tuesday.

“Iran is and remains the preeminent state sponsor of terrorism in the world … and also, together with Hizbullah, as they pursue destabilizing activities around the globe, we are firmly committed to working with partners and allies to counter and disrupt Iranian activities,” Benjamin told journalists after a briefing on the annual "Country Reports on Terrorism."

Bulgarian Tourism Minister Delian Dobrev said on Tuesday forensic experts were close to producing an image of the suicide bomber who killed six people in an attack on Israelis at a Black Sea resort.

"The investigation into the attack is making progress and we have succeeded in recreating 95 percent of the face of the murderer," Israeli President Shimon Peres' office quoted Dobrev as telling his host during a meeting in Jerusalem.

An attacker stabbed three Eritrean men in a south Tel Aviv video store on Tuesday in what police said they were initially treating as a racist attack.

"All three people that were stabbed were taken to hospital with light to moderate injuries," police spokesman Micky Rosenfeld told Agence France Presse.