WASHINGTON (AP) — Democrat Barack Obama's campaign said Thursday that Michelle Obama never used the word "whitey" in a speech from the church pulpit as it launched a Web site to debunk rumors about him and his wife.

The rumor that Michelle Obama railed against "whitey" in a diatribe at Chicago's Trinity United Church of Christ has circulated on conservative Republican blogs for weeks and was repeated by radio talk show host Rush Limbaugh. The rumor included claims of a videotape of the speech that would be used to bring down Obama's candidacy this fall.

"No such tape exists," the campaign responds on the site, www.fightthesmears.com. "Michelle Obama has not spoken from the pulpit at Trinity and has not used that word."

WASHINGTON (AP) — In a stinging rebuke to President Bush's anti-terror policies, a deeply divided Supreme Court ruled Thursday that foreign detainees held for years at Guantanamo Bay in Cuba have the right to appeal to U.S. civilian courts to challenge their indefinite imprisonment without charges.

Bush said he strongly disagreed with the decision — the third time the court has repudiated him on the detainees — and suggested he might seek yet another law to keep terror suspects locked up at the prison camp, even as his presidency winds down.

SHAHR-E-KORD, Iran (AP) — Iranian leader Mahmoud Ahmadinejad called President Bush a "wicked man" Wednesday.

Addressing thousands of people in this central city, he said Bush had set out to damage Iran but failed to halt its nuclear program and would not succeed in his goal of attacking the Islamic republic.

"This wicked man desires to harm the Iranian nation. (Bush) made plans, moved into Afghanistan and then Iraq, and announced that Iran was the third target," Ahmadinejad said.

"I tell him ... your era has come to an end. With the grace of God, you won't be able to harm even one centimeter of the sacred land of Iran."

WASHINGTON (AP) — Jim Johnson, a manager of Democrat Barack Obama's vice presidential search team, resigned Wednesday amid criticism over his personal loan deals.

"Jim did not want to distract in any way from the very important task of gathering information about my vice presidential nominee, so he has made a decision to step aside that I accept," Obama said in a statement. "We have a very good selection process under way, and I am confident that it will produce a number of highly qualified candidates for me to choose from in the weeks ahead. I remain grateful to Jim for his service and his efforts in this process."

KRANJ, Slovenia (AP) — President Bush and European allies on Tuesday threatened tougher sanctions to squeeze Iran's finances and derail its potential pursuit of a nuclear weapon. Bush said the prospect of a nuclear-armed Iran would endanger world peace.

"They can either face isolation, or they can have better relations with all of us," Bush said of Iran's leaders while capping his final European Union-U.S. summit.

The president and EU leaders embraced new financial sanctions against Iran unless it verifiably suspends its nuclear enrichment. They said Iran must fully disclose any nuclear weapons work and allow the International Atomic Energy Agency to verify that work.

LAKE DELTON, Wis. (AP) — Engineers kept watch over this rain-deluged state's dams Tuesday after a major collapse nearly emptied Lake Delton in a torrent that washed away houses and a highway.

The Lake Delton breach was caused by violent, drenching weekend thunderstorms that threatened the survival of the tiny Wisconsin town of Gays Mills and displaced thousands of Indiana residents. The stormy weather was blamed for 15 deaths in the Midwest and elsewhere.

One engineering assessment team from the Wisconsin National Guard headed to Lake Delton to determine what equipment and supplies will be needed to repair the gaping hole that let water from the 267-acre lake carve a new channel to the Wisconsin River on Monday.

NEW YORK (AP) — Drivers are paying an average of $4 for a gallon of gasoline for the first time.

AAA and the Oil Price Information Service say the national average price for a gallon of regular gas rose to $4.005 overnight from $3.988. But consumers in many parts of the country have already been paying well above that price for some time.

Gas is expected to keep climbing, putting greater pressure on consumers and businesses, because the price of oil is soaring in futures markets. Light, sweet crude shot up nearly $11 a barrel Friday and approached $140 for the first time.

Along with higher fuel costs, consumers are also contending with higher prices for food and other goods because of rising transportation costs.

CHARLESTON, W.Va. (AP) — West Virginia University President Mike Garrison said Friday he will resign in September to end the controversy surrounding the improper awarding of a master's degree to the governor's daughter.

"After careful reflection, I have determined I am the one person who is uniquely situated to stop this dialogue with my decision," Garrison told the school's Board of Governors. "It is the most difficult decision I have ever faced. But it is a clear decision with a clear outcome."

The 39-year-old Garrison's nine-month administration has been dogged from the start by the degree scandal and the sudden departure of former football coach Rich Rodriguez that triggered a $4 million lawsuit by WVU over a buyout clause in his contract.

WASHINGTON (AP) — Hillary Rodham Clinton will end on Saturday her historic bid to become the first woman president but Barack Obama said he won't be hurried into a decision on whether to make her his running mate.

Clinton, in an e-mail to supporters, said she "will be speaking on Saturday about how together we can rally the party behind Senator Obama. The stakes are too high and the task before us too important to do otherwise."

The e-mail was a shift in tone by the former first lady, who announced 17 months ago that she was "in it to win it." Many of her supporters now are pushing for her to be included as the vice presidential candidate, in their minds a "dream ticket" that would bring Obama her enthusiastic legions and broaden his appeal to white and working-class voters.

DALLAS (AP) — Continental Airlines said Thursday it is cutting 3,000 jobs and reducing capacity by 11 percent, citing record fuel costs that have pushed the industry into its worst crisis since 2001. It also said its two top executives will forgo pay for the rest of the year.

The job cuts represent about 6.5 percent of the company's work force of 45,000.

Houston-based Continental said it will begin pulling back on flights in September, when departures on its mainline operations will drop about 16 percent below September 2007 levels. Fourth-quarter capacity will fall 11 percent.

Shares of Continental rose 68 cents, or 4.7 percent, to $15.18 in the opening minutes of trading.