World News Roundup: Denmark becomes third Nordic country to form leftist govt; Iran calls White House 'mentally retarded'

Following is a summary of current world news briefs.

Explainer: Money talks in Trump's Mideast plan - but can it pave way for peace?

More than two years after U.S. President Donald Trump first proposed a plan to revive the Israeli-Palestinian peace process, its first phase was launched on Tuesday at an economic workshop in Bahrain. The 'Peace to Prosperity' economic summit to encourage investment in the Palestinian Territories was billed as the first part of the White House's broader political plan to end the conflict.

Trump threatens 'obliteration,' Iran calls White House 'mentally retarded'

U.S. President Donald Trump threatened on Tuesday to obliterate parts of Iran if it attacked "anything American," in a new war of words with Iran which condemned fresh U.S. sanctions on Tehran as "mentally retarded." But Trump later left the door open for talks, saying that Iran should speak to the United States "peaceably" to ease tensions and potentially lift U.S. economic sanctions.

Bomb blast kills four Iraqi federal police officers: security sources

Four Iraqi federal police officers were killed on Tuesday after a bomb went off southwest of the oil-rich city of Kirkuk, two security sources told Reuters. The blast took place near the village of Habat, which lies about 40 km (25 miles) southwest of Kirkuk, on the border between Rashad and Daquq districts.

U.S. launches economic formula for Middle East peace, Palestinians unhappy

The Trump administration launched a $50 billion economic formula for Israeli-Palestinian peace on Tuesday, saying an investment program for the Palestinians was a precondition for ending the decades-old conflict. U.S. President Donald Trump's senior adviser and son-in-law Jared Kushner opened a two-day international meeting in Bahrain to rally support for the blueprint, which has met broad disdain from Palestinians and others in the Arab world although regional U.S. allies such as Saudi Arabia discreetly support it.

Denmark becomes third Nordic country to form leftist government this year

Denmark on Wednesday became the third Nordic country this year to form a leftist government after Social Democratic leader Mette Frederiksen finalised terms for a one-party minority government, making her the country's youngest-ever prime minister. While the new left-leaning government is unlikely to fundamentally change Denmark's economic policy, Frederiksen, 41, has promised to increase welfare spending after years of austerity.

Chile police arrest two in murder of Canadian in Valparaiso

Chilean police arrested two men suspected of killing a Canadian citizen last week during an attempted mugging while he strolled with his family through the port city of Valparaiso, police said on Tuesday. The Canadian man was stabbed to death last Friday after he tried to stop two assailants from snatching his backpack. The two assailants fled the scene while the victim's family members were reportedly unharmed.

Saudi forces say they have captured leader of Yemen branch of Islamic State

Saudi special forces have captured the leader of the Yemeni branch of the Islamic State militant group, the Saudi-led military coalition fighting in Yemen said on Tuesday. The leader, Abu Osama al-Muhajer, as well as other members of the organization including its chief financial officer, were captured on June 3 in a raid on a house carried out by Saudi and Yemeni forces, the coalition said in a statement carried on Saudi state news agency SPA.

Exclusive: Johnson courts financiers in race to become British PM - sources

Boris Johnson, the frontrunner in the race to become Britain's next prime minister, has met hedge fund and private equity executives to raise donations for his leadership campaign, according to sources familiar with the matter. Johnson, who on Tuesday reaffirmed his determination to take Britain out of the European Union on Oct 31, is seeking to build up a war chest for his campaign and rebuild ties with executives, which were strained last year by his expletive four-letter-word attack on business.

U.S. hopes to re-launch China trade talks, will not accept conditions on tariffs

The United States hopes to re-launch trade talks with China after President Donald Trump and President Xi Jinping meet in Japan on Saturday but Washington will not accept any conditions on tariffs, a senior administration official said on Tuesday. The two sides could agree not to impose new tariffs as a goodwill gesture to get negotiations going, the official said, but it was unclear if that would happen.

Trump committed to campaign to oust Venezuela's Maduro: U.S. envoy

President Donald Trump is still committed to a pressure campaign to force Venezuelan President Nicolas Maduro to step aside to make way for opposition leader Juan Guaido, Washington's envoy for Venezuela said on Tuesday. The campaign has failed to dislodge Maduro, who has the support of Russia and China. Arguing that Maduro's 2018 re-election was illegitimate, Guaido invoked Venezuela's constitution in January to declare himself interim president with backing from the United States and other Western countries.