Rebels pound Ukrainian troops after peace talks fail

YENAKIEVE, Ukraine (Reuters) - Separatist rockets streaked across hills in eastern Ukraine on Monday as rebels pounded the positions of Ukrainian government troops holding a strategic rail town, while both sides prepared to mobilise more forces for combat.

U.S. officials said Washington was taking a "fresh look" at providing Ukraine with lethal aid after a surge of violence following the collapse of a new peace effort on Saturday, although they emphasised that no decision had yet been made.