Welcome to Middle East Live. Here's a round of the latest developments in the region:

• There is an uneasy ceasefire in the capital Sana'a following three days of violence that killed 62 people, writes Tom Finn.

The truce, negotiated by Yemen's vice-president Abedrabbo Mansour Hadi and several foreign envoys, follows the worst bout of violence seen in Yemen since protests against President Ali Abdullah Saleh began in earnest in February. What began as a government crackdown on a march on Sunday is shifting into a fierce military showdown between the Republican Guard – an elite force headed by Saleh's son Ahmed – and defected soldiers loyal to Ali Mohsen, a powerful general who joined the opposition in March.

• A mass funeral will be held in Sana'a today to mourn those killed. Anti-government protests are also planned this afternoon.

• American anti-terror loyalties are compounding the crisis, argues Ginny Hill, Yemen specialist at the foreign affairs thinktank Chatham House.

The Pentagon's reliance on Ali Ahmed (president Saleh's son) and his cousins is distorting Yemen's domestic politics, and the options for transition. Even if Saleh himself might be ready to stand down – which many doubt – it is clear that he still expects a prominent role for Ahmed. Meanwhile, Ahmed and his cousins are entrenched in the presidential palace in Sana'a, and gunmen under their control opened fire on demonstrators on Sunday. Neither Ali Mohsen nor the al-Ahmar family show any sign of consenting to a transition deal that leaves Saleh's inheritors in place. Yemen's protesters are bearing the bloody brunt of these elite rivalries.

• Libya's first post-Gaddafi government will be named within 10 days, Al-Arabiya reports.

With the new Libyan flag flying at the United Nations headquarters, interim government leader Mustafa Abdel Jalil thanked all countries who had helped the "success of the Libyan revolution," which he said cost at least 25,000 lives.

• Forces loyal to the interim government appear poised for a final assault on Gaddafi's hometown of Sirte, the Los Angeles Times reports. "We'll give them a few days and then hit them strong, by surprise," a fighter told the paper.

• The US has been pressing Syria's opposition leaders to unite in their efforts to bring down the Assad government, the New York Times reports. It also says the future of Syria will raised at a meeting later today between Barack Obama and the Turkey's prime minister Recep Tayyip Erdogan.

• Iraq has turned against the Assad regime after months of support. An adviser to the Iraqi prime minister, Nouri al-Maliki, was quoted in the New York Times as saying:

We believe that the Syrian people should have more freedom and have the right to experience democracy. We are against the one-party rule and the dictatorship that hasn't allowed for the freedom of expression.

• The surprise resignation of Wadah Khanfar as head of al-Jazeera raises fears about the network's independence. The new boss is Sheikh Ahmed bin Jassim Al Thani, a little-known executive at Qatargas and a member of the fabulously wealthy Gulf country's ruling dynasty – pointing to a clear attempt to exercise greater control.

• Khanfar departure comes after WikiLeaks indicating he had modified the network's coverage of the Iraq war in response to pressure from the United States, the New York Times notes.

• Syria's state news agency, which has repeatedly attacked al-Jazeera, seized on Khanfar resignation. It said:

Director-General of al-Jazeera Satellite Channel, Waddah Khanfar, resigned on Tuesday after he was found directly in contact with the US intelligence as well as fabricating news on the events in Syria, Yemen and Libya.

International efforts to forestall a showdown in the UN security council over the declaration of a Palestinian state are solidifying around a plan for the Palestinian leader, Mahmoud Abbas, to submit a request for recognition but for a vote on the issue to be put on hold while a new round of peace talks is launched. The US president Barack Obama is expected to meet the Palestinian leader at the UN on Wednesday as Abbas comes under intense pressure from the US and Europe to compromise.

Iran

Copies of Gabriel García Márquez's book News of a Kidnapping have sold out from bookshops in Tehran this week after detained opposition leader Mir Hossein Mousavi said the book's description of Colombian kidnappings offers an accurate reflection of his life under house arrest. Mousavi and fellow opposition leader Mehdi Karroubi have been under house arrest since mid-February when thousands of Iranians poured onto the streets in response to their calls for fresh protests in solidarity with pro-democracy movements in the Arab world.

Bursts of shelling are threatening the fragile truce in Sana'a, al-Arabiya reports, as the death toll of the last three days increased to 76 people.

A Yemeni activist who tweets under the name yemen_updates says the ceasefire is not holding:

I just heard three big explosions in the surroundings of 1st Armored Brigade. Continued gun shooting. Truce has fallen down. #Yemen

Sana'a Science and Technology University Hospital has resorted to using domestic freezers to store dead bodies, according to this footage.

Nato continued to pound Sirte, Gaddafi's birthplace, in its latest air strikes on Libya.

Key Hits 20 September [pdf]: In the vicinity of Sirte: 2 Military Ammunition/Storage Facilities, 1 Command and Control Node, 1Military Vehicle Storage Facility, 6 Air Missile Systems, 1 Tank.

In the vicinity of Waddan/Hun: 1Military Vehicle Storage Facility, 4 Anti Aircraft Guns, 1 Armed Vehicle.

Wadah Khanfar has denied that his resignation as head of al-Jazeera was connected to WikiLeaks disclosures suggesting he changed the network's coverage of the Iraq war in response to pressure from the US.

Speaking on the network today he admitted that mistakes had been made, but he insisted that al-Jazeera has remained independent from any government.

"Yes sometimes we did make some mistakes ... most of the pressure was political, and when it was political we don't respond to it. We have never had any relationship with any government in the world that could dictate [to us] what to do."

He pointed out that his name was mentioned several times in the cables disclosed by WikiLeaks, but only one was being focused on. "If you look at how the Americans view me through WikiLeaks - the Americans always used to be sceptical about al-Jazeera. Someone has picked out one document related to one incident, and this incident was dealt with professionally from our side. If the whole scope of the documents can be put on the table, I think people can understand much better."

Khanfar also insisted that al-Jazeera will remain independent under its new management.

Thousands of people have gathered for the mass funeral of those killed in Sana'a in the last three days.

There are reports that as many as 83 people will be mourned.

Yemen_updates tweets:

Just announced that 30 martyers will be brought for the funeral services in 60m Road. #yemen #sanaa Other 53 martyers will be attended to after completion of paperwork. #Sanaa #Yemen



View Sana'a in a larger map

The funeral march is taking place on the city's 60 Metres street, marked on the map.

Tom Finn, the Guardian's stringer Sana'a, is at today's mass funeral in 60 Metres Street. He tweets:

On our way to Siteen for the funeral march. Massive turnout expected. They're bringing the bodies out of the hospital, thousands screaming "Allah Akbar". Posters everywhere of child shot dead on Monday.

Anas, a 10 month-old baby boy shot dead earlier this week, has become the focus of a moving mass funeral in Sana'a, Tom Finn reports from the Yemeni capital.

At least 100,000 people have gathered to mourn at least 83 people, Tom said on a noisy line from Sana'a.

"They are carrying bodies which are wrapped in Yemeni flags. People are shouting 'there is no God but Allah'. It is a very emotional scene. People are crying. There are posters everywhere of the 10-month old boy who was shot dead. There have got to be 100,000 people here."

Tom explained that a cleric on megaphone had been reading off the names of those killed.

He talked at length about the child who has become something of a symbol here. There are these posters showing this boy with a bloody forehead where the bullet went through his head ... He [the man with the megaphone] is saying things like 'this is for the 10-month-old child, what did he do to deserve this? ... now they are turning on our children'.

It is feared that more people have been killed. Tom said: "83 is the current death toll. But I just spoke to one man who thinks it is double that. He's been on the front line and he's seen soldiers shooting people and taking the bodies away. He said, they didn't want the world to see how many people have been killed here."

On the ceasefire Tom said:



The violence has certainly diminished since yesterday. There has been the odd sound of machine gunfire and the odd explosion. It is much more sporadic than it was before. A soldier here said they had agreed on a ceasefire, and as long as protesters were not fired at they will not be responding fire. [General] Ali Mohsen's men have held that line from the start. They say they are acting in self defence and they are not willing to see protesters being killed. There is mixed opinion here about whether they are doing that and whether they are making matters better or worse, but on the whole the [defected] army have, until recently, been showing restraint. I've been told by numerous protesters that there is not going to be any violence today. That this is a peaceful day when they are burying bodies and they expect all sides to respect that. I've been to funeral marches here before and they don't turn violent.

Tom Finn continues to describe scene at the funeral in Sana'a on Twitter.

"Justice, Justice for the martyrs," they're screaming. There's 9 bodies wrapped in Yemeni flags laying out in the sun. Islah dominating ... Now a woman on the microphone shouting I will not marry anyone except one injured at change square. Now everyone's praying, eerie quiet with sound of shelling in the distance. #Yemen

Thousands of people are rallying in the West Bank city of Nablus in a festive celebration of the Palestinian bid for statehood.

You can follow the latest on the rally and the UN general assembly debate on the issue on a separate live blog.

There are several reports that the ceasefire in Sana'a is breaking down.

al-Arabiya:

Gunfire heard in Sanaa streets: Al Arabiya correspondent #alarabiya #Yemen #Saleh

Tom Finn:

The ceasefire must have been broken. Heavy shelling, smoke is rising from Sanaa, people here suddenly marching.

yemen_updates:

Bombing continues with columns of smoke coming from Kentuchy intersection on Zubairy St. #Yemen #Sanaa

Journalist Adam Baron

smoke appears to be rising over jawlat kentucky, center of clashes, echo of clashes continues. #sanaa #yemen

Here's a lunchtime summary

Yemen

• An estimated 100,000 people attended the funeral of 83 people killed in three days of violence in Sana'a (see 11.16am). A 10-month-old baby boy who was shot in the head was the focus of the event.

• A fragile ceasefire in Sana'a appears to be breaking with numerous of reports of gunfire and explosions. A doctor told Tom Finn that five people had been killed in the latest clashes.

Iran

Iran has freed two Americans held as spies for over two years on bail of $1m after Iraq and Oman mediated for their release. A US official told CNN that Shane Bauer and Josh Fattal had been released a month after a court sentenced them each to eight years in jail.

Palestinian territories

Thousands of people are rallying in the West Bank in a festive celebration of Palestinian bid for UN statehood. US and European leaders and are trying to persuade Mahmoud Abbas to agree to a last minute compromise deal on the sidelines of a UN meeting.

Syria

Turkey's prime minister Recep Tayyip Erdogan says his country is considering sanctions against Syria after cutting all ties with the Assad regime over its crackdown. He also accused Syria of engaging in "dark propaganda" against Turkey.

Libya

Nato has hit more targets in the Gaddafi strongholds of Sirte and Waddan. Despite the continued fighting, the National Transitional Council insists it will form a government within ten days.

Five protesters were killed today after Sana'a's ceasefire was broken, Tom Finn reports in a graphic telephone call from Change Square in the Yemeni capital.

Witnesses told Tom that seven or eight shells were fired at tents in Change Square, during prayers. "They are showing me now a pile of blood on the floor where [one man] was killed. The bullet [or shell] hit the ground bounced straight off the ground, through his tent, and straight into his head," Tom reported.

There are holes in buildings and in tents and marks on the ground where all of these bullets [or shells] fell. And this was during prayer time. That's what they are so shocked about. One person died instantly ... the other four died from sniper fire at the other end of the protest camp - Kentucky roundabout which is the front line. It is hard to know if this is stray gunfire or if this is intentional. But the fact that it is has happened twice in a row makes it hard to believe that this is just an accident.

On the size of the ammunition being fired Tom said: "They are shells essentially. I've got one in my hand. If you put your thumb to your finger that's about the width of one of these things."

Tom described how the ceasefire was broken during prayers at the mass funeral of those killed in the last three days. "About 15 minutes into the prayers, that's when the shelling started. Everyone suddenly turned and looked down into Sana'a and could see smoke rising. Suddenly that grief and sadness was just anger. People just started marching, there was no sense of control whatsoever. If this keeps happening people are only going to get more and more angry."

"I don't know who started the shelling today. Most of the protesters seem to see them [General Ali Mohsen's soldiers] as heroes now. I was speaking to guy earlier who said: 'If Mohsen's soldiers weren't here we would be slaughtered'. But they are being slaughtered anyway."

Britain's foreign secretary William Hague has expressed his alarm about the violence in Yemen, but has again stopped short of criticising President Saleh's government.

Very concerned by levels of violence in #Yemen. Forces must be disengaged immediately & negotiations on a settlement rapidly advanced

Amateur footage of today's mass funeral in Sana'a shows the scale of the event.

Earlier Tom Finn described the funeral as it took place (see 11.16am).

Reuters confirms Tom Finn's report that five people were killed in the latest violence in Sana'a. It also talked to one of those injured.

"I was sitting in my tent when all of a sudden there was a blast through the tent and I looked down and my leg was bleeding," said Tareq, 18, who was injured in the shelling. He said he had counted four or five shells.

AP says Ali Mohsen's headquarters was shelled.

The headquarters of the renegade 1st Armored Division, came under heavy shelling from government forces but there were no immediate reports of casualties, according to the officials.

Video of the body of headteacher shot by gunfire in the Syrian town of Rastan, near Homs, has emerged. Activists claim the security forces are targeting schools that demonstrated against the Assad regime.

The Local Coordination Committees, says dozens of pupils were rounded up in the southern village of Jassem.

It claimed pupils staged demonstrations at three school in the northern city of Aleppo. In one they shouted Aleppo: "No studying and no teaching until the vile falls," activists claim.

The reports emerged as UN secretary general Ban Ki-moon singled out Syria for "special concern," during his opening address to the general assembly in New York.

The latest attempt by the Gulf Cooperation Council to start a transfer of power in Yemen appears to have failed.

Al-Arabiya reported that's its mediator has left Yemen empty-handed. GCC chief Abdulatif al-Zayani arrived Monday in Sana'a. The Yemen Post said Zayani was hoping to get an agreement on a GCC-brokered deal that would involve president Saleh standing down in return for immunity from prosecution.

Barack Obama is speaking now at the UN about the Arab Spring. Richard Adams is covering the speech here on our blog about the Palestinian statehood bid.

Obama called on the UN security council to stand with the Syrian people and sanction the Assad regime.

In his strongest comments yet on the crackdown in Syria he said:

As we meet here today men women and children and being tortured, detained and murdered by the Syrian regime. Thousands have been killed, many during the holy time of Ramadan. Thousands more have poured across Syria's borders. The Syrian people have shown dignitary and courage in their pursuit of justice - protesting peacefully, standing silently in the street. Dying for the same values that this institution is supposed to stand for. The question for us is clear. Will we stand with the Syrian people or with their oppressors? For the sake of Syria and the peace and security of the world we must speak with one voice. There is no excuse for inaction. Now is the time for the UN security council to sanction the Syrian regime and to stand with the Syrian people.

Obama was more cautious about Yemen and Bahrain:

In Yemen men, women and children gather by the thousand in towns and city squares everyday in the hope that their determination and spilt blood will prevail over a corrupt system. America supports those aspirations. We must work with Yemen's neighbours, and our partners around the world, to seek a path for a peaceful transition of power from president Saleh and a movement to free and fair elections as soon as possible. In Bahrain steps have been take toward reform and accountability. We are pleased with that, but more is required. America is a close friend of Bahrain and we will continue to call on the government and the main opposition block to pursue a meaningful dialogue that brings peaceful change.

Here's a summary of the main events today:

Yemen

• Five protesters were killed when Sana'a fragile ceasefire was broken by gunfire and shelling against a protest camp in Change Square (see 1.40pm). Witnesses described how shells hit tents in the square for the second time this week.

• An estimated 100,000 people attended the funeral of 83 people killed in three days of violence in Sana'a (see 11.16am). A 10-month-old baby boy, who was shot in the head earlier this week, was the main focus of the event.

• Barack Obama called for the peaceful transition of power from the "corrupt" system of President Saleh. A mediator from the Gulf Co-operation Council despatched to Sana'a to try to revive such a deal, left empty handed.

Iran

Iran has freed two Americans held as spies for over two years on bail of $1m after Iraq and Oman mediated for their release. A US official told CNN that Shane Bauer and Josh Fattal had been released a month after a court sentenced them each to eight years in jail.

Syria

• Obama condemned the torture, detention and murder by the Syrian government and urged the UN security council to sanction the Assad regime (see 3.31pm). A headteacher has become one of the latest victims of the government crackdown, activists claim, as the security forces target schools.

• Turkey's prime minister Recep Tayyip Erdogan says his country is considering sanctions against Syria after cutting all ties with the Assad regime over its crackdown. He also accused Syria of engaging in "dark propaganda" against Turkey.

Palestinian territories

Thousands of people are rallying in the West Bank in a festive celebration of Palestinian bid for UN statehood. US and European leaders and are trying to persuade Mahmoud Abbas to agree to a last minute compromise deal on the sidelines of a UN meeting. Richard Adams is following events at the UN.

Libya

• The US ambassador to Libya has returned to Tripoli to lead a newly reopened American Embassy. Gene Cretz arrived a day before plans to raise the US flag over the embassy building in the Libyan capital.

• Nato has hit more targets in the Gaddafi strongholds of Sirte and Waddan. Despite the continued fighting, the National Transitional Council insists it will form a government within ten days.