What’s Next: Jul. 31, 2006

•Iran Will Answer But U.N. action could stall a deal

Iran has pledged to reply by Aug. 22 to a Western offer of incentives to stop its nuclear activity. But it warned of consequences if the U.N. Security Council officially takes up its case–which the U.S. hopes the panel will do this week.

•Congo Votes Will the election usher in stability?

President Joseph Kabila is favored to win Congo’s July 30 vote, its first free election since 1961. A peaceful poll would aid recovery from a bloody civil war that ended in 2003. But most of his 32 opponents are already alleging fraud.

•Online Gambling Backers of a ban want a quick vote

The British owner of a gambling website was arrested in Texas last week for taking illegal U.S. bets. Experts say online gaming is a legal gray area–which some Senators are pushing to clarify with a vote this week on an explicit ban.

•Shake-Up at Disney Studio prez, naughty films axed

Pirates of the Caribbean may be this summer’s smash, but Disney changed course last week, ousting its movie studio’s captain. Next on the plank: 650 more employees and any new plans to make R-rated films.

•Bonds Indictment? Giants star avoids charges–so far

A grand jury’s term expired last week without an indictment of Barry Bonds. But prosecutors are still investigating the slugger’s alleged steroid use, tax evasion and perjury. They go to bat before a new grand jury this week.