Yahoo! News - FBI Probes if Official Spied for Israel

Feith & Libby in hot water. Looove it!

WASHINGTON - The FBI (news - web sites) is investigating whether a Pentagon (news - web sites) analyst fed to Israel secret materials about White House deliberations on Iran. The investigation could strain U.S.-Israeli relations and muddy the Bush administration's Middle East policy.

No arrests have been made, said two federal law enforcement officials, speaking on condition of anonymity because of the continuing investigation. A third law enforcement official, also speaking anonymously, said an arrest in the case could come as early as next week.

Two of those officials raised the possibility the government might not bring espionage charges, but rather lesser ones that could include the mishandling of sensitive government material.

The officials refused to identify the Pentagon employee under investigation but said the person is an analyst in the office of Douglas J. Feith, undersecretary of defense for policy, the Pentagon's No. 3 official.

White House spokesman Scott McClellan, traveling with President Bush (news - web sites) on a campaign visit in Dayton, Ohio, said he was not in a position to discuss a continuing investigation."