A crucial test for the Iraqi leadershipMar 27th, 2008 - 15:50:38

In the past, when U.S. forces blockaded this area in an attempt to put down the militias, al-Maliki had the U.S. back off, since he needed the support of the Shia in the South. With provincial elections upcoming, al-Maliki needs to demonstrate the leadership that's been lacking for years, INCLUDING his dominance over local Shia factions who he'd been protecting. Disarming the militias was a primary unmet benchmark.

Recent U.S. support has gone to the Sunni, who've been paid $300 a month to battle al Qaeda. Now that the fighting has moved north, the U.S. is unwilling to continue those payments; potentially risking the loss of that Sunni loyalty as well.

abcnews.go.com/International/Story?id=4535114&page=2

A Pentagon official said Wednesday that reports from the Basra area indicate that militiamen have overrun a number of police stations and that it was unclear how well the Iraqi security forces were performing overall. The official spoke on condition of anonymity because he was not authorized to discuss the matter publicly.

Demonstrators in the northern Baghdad neighborhood of Kazimiyah called al-Maliki a 'new dictator' as they carried a coffin bearing a crossed-out picture of the U.S.-backed prime minister, who belongs to a rival political party. A sea of people also rallied in Sadr City, chanting slogans against the government and in favor of al-Sadr.

Sheik Salman al-Feraiji, al-Sadr's chief representative in Sadr City, issued a statement with demands to quell the discontent, including the release of Sadrist detainees, an end to military operations against them and al-Maliki's resignation.

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Amid all the turmoil, a bomb blasted a crucial oil pipeline in Basra, triggering a massive fire and threatening the country's ability to export oil. The pipeline blast sent the world's price of oil to $107 a barrel.

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Iraqi Prime Minister Says No RetreatMar 27th, 2008 - 15:53:30

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BAGHDAD (AP) — Iraq's prime minister vowed Thursday to fight 'until the end' against Shiite militias in Basra despite protests by tens of thousands of followers of a radical cleric in Baghdad and deadly clashes across the capital and the oil-rich south.

Mounting anger focused on Prime Minister Nouri al-Maliki, who is personally overseeing operations against the militias dominated by Muqtada al-Sadr's supporters amid a violent power struggle in Basra, Iraq's southern oil hub.

The Iraqi leader made his pledge to tribal leaders in the Basra area as military operations continued for a fourth day with stiff resistance. 'We have made up our minds to enter this battle and we will continue until the end. No retreat,' he said in a speech broadcast on Iraqi state TV.

The events threatened to unravel a Mahdi Army cease-fire and lead to a dramatic escalation in violence after a period of relative calm that had lasted for months.

Sadrist lawmakers in Baghdad issued a strongly worded statement demanding a halt to the military operations and appealing to Iraqi security forces to stand down. 'We call on our brothers in the Iraqi army and the brave national police not to be tools of death in the hands of the new dictatorship,' Sadrist lawmaker Falah Shanshal said.

The crisis was seen as a test of the Iraqi government's ability to eventually take over its own security. The U.S.-led coalition has a minimal presence in Basra after British forces turned over responsibility for the area to the Iraqis in late December.

Demonstrators in the northern Baghdad neighborhood of Kazimiyah called al-Maliki a 'new dictator' as they carried a coffin bearing a crossed-out picture of the U.S.-backed prime minister, who belongs to a rival political party. A sea of people also rallied in Sadr City, Baghdad's main Shiite district.

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