Anti-Gadhafi fighters Monday encircled the ousted leader's hometown of Sirte on the Mediterranean coast from the east, south and west and NATO warplanes pounded the city for a third straight day.

The siege of one of Moammar Gadhafi's last bastions comes as Libya's new rulers said they had unearthed a mass grave in Tripoli of 1,700 prisoners slain by his regime in a 1996 uprising, a massacre that helped trigger the revolt that ousted the despot.

An Israeli court has ordered the government to pay $432,000 to the family of a prominent Palestinian peace activist whose 10-year-old daughter was killed by an Israeli rubber bullet in 2007.

Abir Aramin was standing at a distance from stone-throwing demonstrators in the village of Anata, north of Jerusalem, when Israeli forces fired rubber-coated steel bullets to disperse the protest. One hit Abir, and she died of her wounds two days later.

Saudi King Abdullah urged Yemenis Sunday to implement the Gulf Initiative by which President Ali Abdullah Saleh, who returned from the kingdom two days ago, would transfer power to his deputy.

"We see that the Gulf Initiative is still the exit to resolve the Yemeni crisis and prevent the situation (there) from getting worse," said King Abdullah in a statement carried by state news agency SPA.

A Bahraini special court jailed Sunday the head of the teachers' union for 10 years and his deputy for three, among other Shiites over their role in anti-regime protests, BNA state news agency said.

The verdicts came a day after the kingdom held by-elections boycotted by the Shiite-led opposition to replace 18 Shiite MPs who quit the parliament to protest the violence used against demonstrators in February.

Yemeni President Ali Abdullah Saleh said on Sunday he is ready for a power transfer through early elections, saying he is "committed" to a plan brokered by Gulf states.

"You who are running after power, let us head together toward the ballot boxes," Saleh said in a speech aired on state television on the 49th anniversary of the September 26, 1962 revolution that saw Yemen proclaimed a republic.

Libya's new rulers said Sunday they have unearthed a mass grave of 1,700 prisoners slain by Moammar Gadhafi’s regime in a 1996 uprising, a massacre that helped trigger the revolt that ousted the despot.

The gruesome find came as hundreds of the National Transitional Council's fighters thrust into Gadhafi’s hometown of Sirte from the east and NATO warplanes pounded the coastal city for a second straight day.

Syrian security forces on Sunday shot dead seven people across the country, the Syrian Revolution General Commission said, as the authorities pressed on with a crackdown on anti-regiment dissent.

Troop reinforcements were dispatched to the flashpoint province of Homs and the Damascus suburb of Douma, activists said.

Israeli Foreign Minister Avigdor Lieberman said Sunday he favors the adoption of a plan by the international Quartet that foresees a peace deal with the Palestinians by the end of 2012.

"I think we must accept the Quartet proposal, for it includes a very positive point -- the opening of negotiations with no preconditions," he told Israeli public radio from New York.

Egypt's security forces said on Sunday they seized anti-aircraft missiles and launchers probably destined for the neighboring Palestinian territory of the Gaza Strip.

The eight missiles and shoulder-mounted launchers were found in four wooden boxes near the Suez Canal, security officials said, adding the smugglers appeared to have fled moments before security forces arrived.

Thousands of cheering Palestinians welcomed their president Mahmoud Abbas at his Ramallah headquarters on Sunday as he returned from delivering a historic U.N. membership bid.

An Agence France Presse reporter saw Abbas descend from his motorcade and enter the presidential building known as the Muqataa.