The top American commander in Iraq, General David Petraeus has said he is preparing recommendations on troop reductions before he returns to Washington next month for a report to Congress.
He predicted on Wednesday that the US presence in Iraq would have to be ‘a good bit smaller’ by next summer.
But Petraeus cautioned against a quick or significant US withdrawal that could surrender ‘the gains we have fought so hard to achieve.’
He declined to offer specifics on his upcoming recommendation. The report, expected next month, is seen as a potential roadmap for US military and diplomatic policies in Iraq.
Petraeus also said the ‘horrific and indiscriminate attacks’ that killed at least 250 Yazidis, an ancient religious sect, in northwestern Iraq on Tuesday were the work of al-Qaeda.
Also, in Baghdad on Tuesday, gunmen dressed as local security forces stormed into a heavily guarded state compound to kidnap the deputy oil minister in the highest profile abduction in Iraq for months.
Abdel Jabar al-Wagaa was dragged out of the compound of the state oil marketing company at gunpoint with several other people in broad daylight, oil ministry officials said.
Oil Minister Hussein al-Shahristani told state television: ‘It was a criminal gang; they have no political or sectarian motives.’
Also ten more American soldiers were reported killed on Tuesday, including five when their helicopter crashed in the western province of Al-Anbar.
The attacks came on the second day of the latest major US operation.
• Second news story
LONDON SHARE PRICES PLUNGE
Share prices plunged on the London Stock Exchange yesterday, with the FTSE 100 index crashing below 6,000 points as fears continued over the impact of losses in the US housing market.
Almost £140bn has been wiped off the prices of the UK’s leading shares since last Wednesday.
The index of leading UK shares fell by 188.10 points, or 3.1 per cent, to 5,921.3 points just before the New York stock market’s opening at 2.30pm.
The London stock market closed 250.4 points down at 5858.9 with shares £60 billion lighter.
On Wall Street, the Dow Jones index opened below 13,000 points after Wednesday’s 167 points fall and fell a further 175 points within minutes.
Wednesday’s New York fall was triggered by a warning from investment bank Merrill Lynch that America’s largest mortgage lender, Countrywide Financial could face bankruptcy if the availability of credit in the market got any worse.
Merrill Lynch told its clients to sell any shares they own in Countrywide.
This came after Wall Street share prices had taken a massive dive on Tuesday after a profit warning from retail giant Wal-Mart.
The warning sent Wal-Mart’s own share price down more than 5 per cent and dragged the entire US stock market down with it.
The retail giant said it was not just US shoppers who were struggling, but consumers all over the world.
Wal-Mart US stores chief Eduardo Castro-Wright said: ‘Consumers today are pressed by a number of factors. Higher energy, higher gas prices and higher interest rates are all stretching their paychecks.’
People were under such financial pressure, said Wal-Mart, that both staff and customers were resorting to stealing from its stores. Theft of cosmetics and electronics were particularly rife.
