CUERNAVACA, Mexico – Two hundred Mexican Navy marines stormed an upscale apartment complex and killed a reputed drug cartel chief in a two-hour gunbattle, one of the biggest victories yet in President Felipe Calderon’s drug war.

Arturo Beltran Leyva, the “boss of bosses,” and six members of his cartel died in the shootout Wednesday in Cuernavaca, just south of Mexico City, according to a navy statement Thursday. Read the full story

Using sophisticated smuggling networks, the traffickers have transported a portion of the pilfered petroleum across the border to sell to U.S. companies, some of which knew that it was stolen, according to court documents and interviews with American officials involved in an expanding investigation of oil services firms in Texas.

The widespread theft of Mexico’s most vital national resource by criminal organizations represents a costly new front in President Felipe Calderón’s war against the drug cartels, and it shows how the traffickers are rapidly evolving from traditional narcotics smuggling to activities as diverse as oil theft, transport and sales. Read the full story

Passengers Freed From Hijacked Jet in Mexico

MEXICO CITY — Three hijackers threatened to blow up an Aeromexico Boeing 737 that landed at Mexico City’s airport from Cancun Wednesday afternoon, Transport Minister Juan Molinar told Mexican radio. Read the full story