This story is gathering traction, with gay site 365gay.com now running a report along these lines.
And WorldNetDaily adds this interesting bit of information:
Various Israeli security sources have in the past suggested publicly Arafat might be homosexual. They’ve claimed Arafat’s former personal driver – a Mossad double agent – used to find teenage boys to bring back to the PLO leader. His wife, Suha, mostly lived abroad and rarely saw her husband.
Update: Could this be the real reason why Terrorfat went to a French hospital?
(By the way, I really don’t know if Terrorfat is gay or not, and don’t really care. But I am having fun with the rumors).