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UNITED NATIONS, March 27 (Reuters) - The United Nations Security Council expressed concern on Friday at the proliferation of arms and ammunition in Libya as it left an arms embargo on the North African state unchanged and urged the recognized government to improve monitoring of its weapons.

WASHINGTON, March 27 (Reuters) - The U.S. Defense Department on Friday said it will be "demanding but fair" in negotiations with Lockheed Martin Corp for the next two batches of F-35 fighter jets, one of the Pentagon's largest-ever sole-source contracts.

MISSISSAUGA, Ontario, March 27 (Reuters) - British Foreign Secretary Phillip Hammond said on Friday he was increasingly hopeful that world powers could strike "the right deal" at talks with Iran over its nuclear program.

* Graphic: http://link.reuters.com/fuj44w (Adds Western diplomat on possible easing of U.N. sanctions, arms embargo)

UNITED NATIONS, March 27 (Reuters) - France said on Friday it would push the United Nations Security Council to refer the Islamic State militant group to the International Criminal Court for possible prosecution of war crimes and crimes against humanity.

ADEN, March 27 (Reuters) - Yemen's Houthi rebels made broad gains in the country's south and east on Friday despite a second day of Saudi-led air strikes meant to check the Iranian-backed militia's efforts to overthrow President Abd-Rabbu Mansour Hadi.

* Army says captured Boko Haram headquarters (Adds APC, UN Statement)

A change in the rules for permitted development rights in the UK has increased the development threshold for rooftop solar panels on commercial property by a factor of 20. Under the new rules, installations up to 1 MW no longer require full planning permission for development.

Coal producers focused on the Chinese market are scratching their heads: ever since China started imposing restrictions on imports, suppliers have gone on a wild hunt for buyers.

WASHINGTON, March 27 (Reuters) - British Foreign Secretary Philip Hammond said on Friday that Saudi Arabia felt it necessary to intervene in Yemen to avoid Iranian-backed rebels taking over the country along its southern border.

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