World leaders on Thursday reacted with horror and indignation at the assassination of Benazir Bhutto condemning the 'odious act' as 'fanatacism and a heinous terrorist crime' but hoped the 'difficult path to peace' in Pakistan would continue.

In the first reaction of the US, Deputy Spokesman of the State Department Tom Casey said the attack at the political rally in which the former Pakistan premier was killed demonstrated 'that there are still those in Pakistan who want to subvert reconciliation and efforts to advance democracy.'

President George W Bush [Images], who is in Crawford, Texas, has been kept informed of the developments.

French President Nicolas Sarkozy described the killing as an 'odious act' and said he condemned it with the 'greatest severity.'

"Terrorism and violence have no place in the democratic debate and in the combat of ideas and programees," Sarkozy said in a letter to his Pakistani counterpart Pervez Musharraf [Images], which was made public by the Elysee palace.

Italian Premier Romano Prodi condemned the 'fanaticism' and said 'the difficult path towards peace and democracy in this region should not be abandoned and the sacrifice of the former prime minister... should be the strongest example for those who do not give up in the face of terrorism.'

"Bhutto wanted to fight her battle until the end with just one weapon -- that of dialogue and political discussion," Prodi said in a statement.

The chief of Bangladesh's interim government Fakhruddin Ahmed said 'cowardly bomb attack' is an unpardonable crime.

Russia [Images] feared the attack would probably unleash a wave of terrorism but hoped the Pakistani government will manage to take necessasry steps to ensure the country's stability.

"We firmly condemn this terrorist act and we hope that the Pakistani leadership will managed to take necessary steps to ensure stability in the country," Russian Foreign Ministry spokesman Mikhail Kamyni was quoted as saying.

Deputy Foreign Minister Alexander Losyukov feared that Pakistan would be swept by a new wave of terrorism while Chairman of the Duma Committee on Foreign Affairs Konstantin Kosachyoy urged an international probe in the killing.

British Foreign Secretary David Miliband said in targeting Bhutto extremist groups in their sights all those committed to democratic processes in Pakistan.

"They cannot and must not succeed," he said.

Describing Bhutto as its 'great friend,' the United Arab Emirates said it was 'appalled' by the great loss and condemned the 'criminal and cowardly' act. Its Foreign Minister Sheikh Abdullah called on the people of Pakistan to close ranks in the face of a vicious terror.

Iran's Foreign Ministry Spokesman Mohammad Ali Hosseini said the 'terrorist and criminal act' was aimed at disrupting calm in Pakistan.