A mass grave was discovered on Monday in the southern Syrian town of Daraa, at the heart of protests roiling the country for two months and virtually shut off from the outside world, an activist told Agence France Presse by telephone.

"The army today allowed residents to venture outside their homes for two hours a day," said Ammar Qurabi, of the National Organization for Human Rights in Syria.

Insurgents killed and mutilated a Christian construction worker whom they had kidnapped over the weekend and demanded $100,000 in ransom, Iraqi police and medical officials said on Monday.

Ashur Issa Yaqub, a 29-year-old Chaldean Christian, had been snatched on Saturday in the oil-rich ethnically-mixed northern city of Kirkuk, and is survived by his wife and three children.

The U.N. war crimes court's chief prosecutor said Monday he would seek arrest warrants against Libyan leader Moammar Gadhafi, his son Saif al-Islam and his intelligence head for crimes against humanity.

"Today, the office of the prosecutor requested the International Criminal Court (issue) arrest warrants," Luis Moreno-Ocampo said at a press conference in The Hague, where the International Criminal Court is based.

Italy's Foreign Minister Franco Frattini said Monday the days of Moammer Gadhafi's regime were "numbered" and that some Libyan members of government were looking for a way for their leader to go into exile.

"The Libyan regime's days are numbered," Frattini said in a Channel 5 television interview.

The embattled Syrian regime is pushing ahead with its campaign of repression against political and human rights activists, holding many of them incommunicado and going after their families and friends, Human Rights Watch said.

"Syria’s leaders talk about a war against terrorists, but what we see on the ground is a war against ordinary Syrians -- lawyers, human rights activists, and university students -- who are calling for democratic changes in their country," Sarah Leah Whitson, Middle East director of the New York-based organization, said in a statement late Sunday.

Israeli naval forces fired warning shots Monday at a ship carrying aid to Gaza as it approached the shore, forcing it to withdraw to Egyptian waters, the vessel's Malaysian organizer told Agence France Presse.

"The MV Finch, carrying sewage pipes to Gaza, had warning shots fired at it by Israeli forces in the Palestinian security zone this morning at 0654 Jordan time (0354 GMT)," said Shamsul Azhar from the Perdana Global Peace Foundation.

Israel will resume the transfer of Palestinian tax revenue funds that it froze after a unity deal between rival Fatah and Hamas, Strategic Affairs Minister Moshe Yaalon said Monday.

"We have unblocked the funds because we have established that the agreement between Fatah and Hamas has had no effect, the security cooperation (between Israel and the Palestinian Authority) continues on the ground," Yaalon told Israeli public radio.

A Saudi diplomat was killed in a drive-by shooting near the consulate in Karachi on Monday, the second attack on Saudi interests in Pakistan's biggest city in less than a week, officials said.

The motive of the attack was not immediately clear, but authorities said they were investigating whether it was connected to the death of Saudi-born Osama bin Laden, who was killed by U.S. forces in Pakistan on May 2.

Egyptian protesters demanding the expulsion of Israel's ambassador clashed with riot police outside the Israeli embassy in Cairo on Sunday, leaving at least 24 people wounded.

The police, who were backed by the army, fired dozens of tear gas canisters at the protesters, who ripped out paving stones to throw and burned tires.

Iranian President Mahmoud Ahmadinejad branded Israel a cancer cell that must be removed Sunday, after Israeli gunfire killed 12 people and wounded hundreds as Palestinians marched in a mass show of mourning over the creation of the Jewish state.

"On the anniversary of this regime, people demonstrated in various places, but there were dead and wounded and this regime once again showed its real nature," he said in a television interview.