Amid concern from senior UK Government figures and criticism from civil rights campaigners, the US agrees to suspend military court proceedings against Moazzam Begg and Ferroz Abbasi.

A German court approves the extradition of two men wanted by the US on charges of supporting al-Qaeda. The ruling was made on condition that the men would not face the death penalty in the US, and that Germany should make the final decision on their extradition.

The two men,Mohammed Ali Hassan al-Moayad and Mohammed Mohsen Yahya Zayed, were arrested in January. The US believes they played a significant role in raising funds for al-Qaeda, but has not linked them directly with the 11 September attacks.

Iran admits for the first time it is holding senior members of the al-Qaeda network.

There is speculation that al-Qaeda spokesman Sulaiman Abu Ghaith could be among the detainees, after a Kuwaiti disclosure that it turned down an offer by Iran to repatriate him earlier in July.

Al-Qaeda terrorists may carry out hijackings or suicide bombings against US airlines by the end of the summer, the US Department of Homeland Security warns.

Officials says that US interests in countries such as the UK, Italy and Australia could be targeted.