As India negotiates the diplomatic minefield that is West Asia, questions are being asked of the government as to whether and how it could engage differently with Iran, Israel and Saudi Arabia, withou

Finance minister Pranab Mukherjee on Tuesday warned of a spike in global fuel prices and domestic inflation as a result of the political uncertainties in the West Asia but said the fallout of the crisis in Japan was too early to assess. "Growing political uncertainty in the West Asia and Libya has profound implications for the global oil markets and for the fuel-oil costs and inflation in our economy," Mr Mukhherjee told the Lower House of Parliament during a debate on the Finance Bill.

US defence secretary Robert Gates held talks with Israeli defence minister Ehud Barak on the threat posed by Iran and the latest West Asia peace efforts, a spokesman said.

The future of West Asia direct peace talks appeared to be in jeopardy after Israel refused to extend a ban on West Bank settlements, a media report said.