A former chief of Saudi intelligence said Wednesday there was overwhelming evidence that Iran was behind a plot to kill the Saudi ambassador to Washington and must "pay the price".

"The burden of proof is overwhelming... and clearly shows official Iranian responsibility for this. Somebody in Iran will have to pay the price, whatever the level of these persons is," Saudi Prince Turki al-Faisal told a conference on oil in London.

Iranian Foreign Minister Ali Akbar Salehi on Wednesday warned the United States against "confrontation" over accusations Tehran plotted to assassinate the Saudi ambassador to Washington.

"We are not seeking confrontation; our policy is cooperation and interaction. If they want to impose a confrontation upon the Iranian nation, the consequences of this issue will be more severe for them," Salehi told reporters after a cabinet session, the ISNA news agency reported.

Prominent Syrian dissident Walid al-Bunni, arrested in August, was freed on bail on Wednesday, his lawyer said.

"The Damascus court of appeals on Wednesday freed opposition figure Walid al-Bunni in exchange for a bail of 1,150 Syrian pounds ($23). He will be tried later for inciting (anti-regime) demonstrations and sectarianism," said Michel Shammas.

Egyptian soldiers never fire on citizens and if they did use their weapons the results would be catastrophic, a military general said on Wednesday, days after deadly clashes with Christians.

"The armed forces cannot direct their fire at the people," General Mahmud Hegazi told a news conference days after the armed forces clashed with Coptic Christian protesters, leaving 25 people dead.

Iraq this month took responsibility for all of its airspace for the first time since the 2003 U.S.-led invasion, the U.S. embassy in Baghdad said on Wednesday.

"On October 1, 2011, the U.S. Air Force (USAF) transferred management of the Baghdad/Balad Airspace sector to the Iraq Civil Aviation Authority (ICAA)," said an embassy statement.

The European Union voiced "grave concern" Wednesday after the United States said it had foiled an Iranian plot to kill the Saudi ambassador, warning it could have serious international implications.

"Should the facts be confirmed, this would constitute a major breach of international law with serious international implications," said Maja Kocijancic, spokeswoman for EU chief diplomat Catherine Ashton.

Qatari emir Sheikh Hamad bin Khalifa al-Thani has hailed as an "important step" the creation of a Syrian opposition front, urging President Bashar Assad to talk to them after months of deadly protests.

"The (formation of the) Syrian National Council marks an important step" said the ruler of the energy-rich Gulf state in remarks aired on Wednesday by the Doha-based Al-Jazeera news channel.

Pope Benedict XVI called on Egypt on Wednesday to fight "attempts to sabotage" relations between Christians and Muslims.

Addressing pilgrims during the weekly general audience in St. Peter's Square, the pope expressed his sorrow over clashes between protesters and security forces on Sunday that left 25 people dead, mainly Coptic Christians.

U.S. Secretary of State Hillary Clinton voiced "deep concern" Tuesday about deadly weekend violence that killed 25 people in Egypt, mainly Coptic Christians.

Clinton phoned top Egyptian diplomat Mohamed Kamel Amr to convey "the need for the Egyptian government to ensure that the fundamental rights of all Egyptians are respected, including the rights of religious freedom, peaceful assembly and the end of military trials for civilians, and that efforts be made to address sectarian tensions," the State Department said.

Turkey on Wednesday welcomed a deal between Israel and Hamas in which a Franco-Israeli soldier, held for five years, is to be exchanged for more than a thousand Palestinian prisoners.

"We are happy," Turkish Foreign Minister Ahmet Davutoglu said, of the deal that will see the Palestinian militant group free Gilad Shalit, who they have held since 2006.