urged peace in a world made fearful by terrorism.
Reporters at Saint Peter’s Square in Vatican City said a large crowd gathered despite rain and cold temperatures.
The Pope urged his audience not to yield to what he described as "mistrust, suspicion and discouragement" and not to let terrorism feed uncertainties and fears.
He spoke amid news of violence in Israel, church attacks in Pakistan and India as well as Serb nationalists preventing worshippers attending an Anglican service in Belgrade, the Yugoslav capital.
Although he did not mention all these attacks separately, the frail and slowly speaking 82-year-old Pope appealed to believers of "all religions" to avert a new conflict.
"The senseless spiral of blind violence" must end, the Pope said in his annual "Urbi et Orbi" Christmas message, which was watched by millions around the world on television.
Before wishing the world a merry Christmas in 62 languages, he urged believers of all religions to build peace in Israel, adding that a smoldering conflict can be overcome.
Although the Pope did not specifically mention Iraq, his words were taken to be an appeal to avert a new war, The Voice of America broadcasting network noted.
He also of other regions with tensions, including Africa where, he said, "devastating famines and tragic internal conflicts are aggravating the already precarious conditions of the people."
