(Fixes dateline)

NAJAF, Iraq (Reuters) July 8 - Mourners marched through Iraq's holy city of Najaf on Wednesday, following the coffin of slain Iranian leader Ayatollah Ali Khamenei as his six-day funeral procession, which drew huge crowds in his home country, pressed on across the border.

People carrying large portraits of the late leader gathered along the route and chanted "Death to America" and "Death to Israel" as Khamenei's coffin was driven on a large truck through the streets.

ANKARA, July 8 (Reuters) - U.S. President Donald Trump on Wednesday said he did not think a full-fledged conflict with Iran would erupt in the wake of military strikes from both sides.

"I don't think it's going to start again. I think it's going to go very quickly. They hit a couple of ships, and so we hit them much harder," Trump told reporters in Ankara after a NATO summit.

"Anything that happens is going to be over very quickly ... and will only make it safer, including for oil," he said.

By Sabine Siebold, Gram Slattery and Tuvan Gumrukcu

ANKARA, July 8 (Reuters) - President Donald Trump threw a summit of NATO leaders into disarray on Wednesday as he demanded the United States cut trade ties with Spain and made renewed claims on Greenland, but later changed tack and said there had been love and "a lot of unity".

Speaking in the Turkish capital Ankara, Trump called Madrid a "terrible partner" in NATO as he railed against allies for not supporting the war on Iran and ordered Treasury Secretary Scott Bessent to halt all trade with Spain.

By Andrew Gray

ANKARA, July 8 (Reuters) - Disputes between U.S. President Donald Trump and other NATO leaders showed the alliance's democratic strength and should serve as a lesson for Russian President Vladimir Putin, NATO Secretary General Mark Rutte said on Wednesday after a summit in Ankara.

In an interview with Reuters, Rutte also said he saw no need to change the way he deals with Trump, despite accusations that he lavishes praise on the U.S. president and fails to push back on his criticism of allies.

July 8 (Reuters) - U.S. President Donald Trump has notified Congress of his decision to rescind Syria’s designation as a State Sponsor of Terrorism, a senior U.S. administration official said on Wednesday.

The move requires Congress to conduct a 45-day review to make the decision final.

(Reporting by Steve Holland and Ryan Patrick Jones; writing by Costas Pitas; editing by Michelle Nichols )

July 8 (Reuters) - Israeli airstrikes and gunfire killed at least nine Palestinians, including two children, aged 10 and 6, in the Gaza Strip on Wednesday, health officials there said.

Medics said an Israeli airstrike killed one person near a school in Gaza City. Twelve people were wounded in the two incidents. The Israeli military said it struck militants in Gaza City, but was unaware of casualties.

July 8 (Reuters) - Pakistan urged all sides to uphold their commitments under the Islamabad Memorandum of Understanding, its foreign ministry said on Wednesday, hours after U.S. President Donald Trump said the interim deal reached with Iran last month was "over".

"Pakistan urges all sides to uphold their respective commitments under the Islamabad Memorandum of Understanding (MoU), which remains an enduring foundation for understanding, mutual respect and shared prosperity for the region and beyond," the statement said.

By Maayan Lubell

TEL AVIV, July 8 (Reuters) - Rahm Emanuel, a Democrat weighing a 2028 U.S. presidential run, said on Wednesday that Israel risks jeopardizing its alliance with Washington unless it changes course on the Palestinians because of growing unease with its policies among U.S. voters.

A former Chicago mayor and chief of staff to former President Barack Obama, Emanuel used a speech at Tel Aviv University to criticize Prime Minister Benjamin Netanyahu's government and propose a new U.S. policy toward the Middle East.