Dolly arrives...Obama speaks about Jerusalem...Bush goes along with housing bill

UNDATED (AP) Residents on the south Texas coast are bracing for the full effects of Hurricane Dolly. The Category 2 storm has maximum sustained winds near 100 miles per hour. The center is expected to make landfall near the Texas-Mexico border in a few hours. The storm's leading edge is blowing down signs, damaging an apartment complex and knocking out electricity to thousands. In Brownsville, palm trees are leaning and small debris is being strewn across the all-but empty streets.

SDEROT, Israel (AP) Barack Obama says it's in Israel's interest to achieve a lasting peace with the Palestinians. But he says he recognizes Israel's right to defend itself. Speaking near the Gaza border, Obama said Jerusalem will be the capital of Israel, but that the issue should be settled through negotiation.

WILKES-BARRE, Pa. (AP) As John McCain sees it, President Bush deserves the credit for the $10-a-barrel drop in the price of oil.

He says it's the result of Bush's lifting of a presidential ban on offshore drilling. It's an action that McCain has been urging during his campaign.

Washington (AP) President Bush is dropping his opposition to a broad housing package aimed at bolstering the sagging economy.

This, despite his objections to including 3.9 billion dollars for areas hit hardest by foreclosures. The House is expected to vote on the bill today. It could become law as early as this week.

NEW ORLEANS (AP) The Coast Guard says a 29-mile section of the Mississippi River at New Orleans is closed. A tugboat pushing a barge and a 600-foot tanker crashed, causing a diesel leak. A Coast Guard spokeswoman says the barge was carrying fuel oil, and more than 419,000 gallons spilled into the river.

(Copyright 2008 by The Associated Press. All Rights Reserved.) APNP 07-23-08 1049CDT | save this article / add to your favorites list