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			 In Washington, U.S. President Barack Obama said he was reviewing 
			military options, short of sending combat troops, to help Iraq fight 
			the insurgency but warned any U.S. action must be accompanied by an 
			Iraqi effort to bridge political divisions. 
 In a rare intervention at Friday prayers in the holy city of 
			Kerbala, a message from Grand Ayatollah Ali al-Sistani, who is the 
			highest religious authority for Shi'ites in Iraq, said people should 
			unite to fight back against a lightning advance by militants from 
			the radical Islamic State of Iraq and the Levant.
 
 Fighters under the black flag of ISIL are sweeping south towards the 
			capital Baghdad in a campaign to recreate a mediaeval caliphate 
			carved out of fragmenting Iraq and Syria that has turned into a 
			widespread rebellion against Maliki.
 
 "People who are capable of carrying arms and fighting the terrorists 
			in defense of their country ... should volunteer to join the 
			security forces to achieve this sacred goal," said Sheikh Abdulmehdi 
			al-Karbalai, delivering Sistani's message.
 
 Those killed fighting ISIL militants would be martyrs, he said as 
			the faithful chanted in acknowledgement.
 
			 Amidst the spreading chaos, Iraqi Kurdish forces seized control of 
			Kirkuk, an oil hub just outside their autonomous enclave that they 
			have long seen as their historical capital, three days after ISIL 
			fighters captured the major city of Mosul.
 There are concerns that sectarian and tribal conflict might 
			dismember Iraq into Shi'ite, Sunni and Kurdish entities. The 
			atmosphere in Baghdad was tense on Friday, the streets were empty, 
			residents were stock-piling food and arming themselves.
 
 Reflecting fears that ISIL's insurgency could erupt into a civil war 
			and disrupt oil exports from a major OPEC member state, the price of 
			Brent crude oil edged further above $113 a barrel on Friday, up 
			about $4 since the start of the week.
 
 MALIKI MUST ACT
 
 Obama told reporters at the White House he would not send U.S. 
			troops back into combat in Iraq but had asked his national security 
			team to prepare "a range of other options" to help Iraqi security 
			forces confront fighters from ISIL. He made clear he expected steps 
			toward Iraqi political reconciliation.
 
 "The United States is not simply going involve itself in a military 
			action in the absence of a political plan by the Iraqis that gives 
			us some assurance that they are prepared to work together," he said.
 
 The U.S. president was facing a chorus of criticism from Republican 
			opponents who say that his missteps in responding to the Syrian 
			civil war and dithering on Iraq has left the United States with few 
			options.
 
 "We need to be hitting these columns of terrorists marching on 
			Baghdad with drones now," said Representative Ed Royce, the chairman 
			of the House Foreign Affairs Committee. Influential Senators John 
			McCain and Lindsey Graham also called for air strikes to deal the 
			insurgents "a crippling blow."
 
 American officials have watched in dismay as the U.S.-trained and 
			-armed Iraqi security forces have crumbled and fled in the face of 
			an onslaught by the militants. Obama noted the United States had 
			invested a lot of money and training in the Iraqi security forces.
 
 "The fact that they are not willing to stand and fight and defend 
			their posts ... indicates that there's a problem with morale, 
			there's a problem in terms of commitment," Obama said. "Ultimately, 
			that's rooted in the political problems that have plagued the 
			country for a very long time."
 
 Western officials have long complained that Maliki has done little 
			to heal sectarian rifts that have left many of Iraq's minority 
			Sunnis, cut out of power since Saddam Hussein's demise, aggrieved 
			and vengeful - a mood exploited by ISIL.
 
 
			 
			A U.S. counterterrorism official questioned whether ISIL had the 
			capacity to turn "tactical victories in Iraq into strategic gains," 
			noting that with just a few thousand fighters it was relying on 
			Sunni nationalist groups that might not back it in the long run.
 
 "There are still plenty of things that could go wrong for a group 
			that typically has done well on its home Sunni turf but, if Syria is 
			any guide, is hardly invincible when confronted in unfriendly 
			territory by capable and motivated fighters," the official said.
 
 The ISIL advance has been joined by former Baathist officers who 
			were loyal to Saddam as well as disaffected armed groups and tribes 
			who want to oust Maliki. Cities and towns that have fallen to the 
			militants so far have been mainly Sunni and the gains have largely 
			been uncontested.
 
 It had long been known that Mosul, a city of two million people, 
			harbored not just ISIL but also the Baathist militant group the 
			Naqshbandi Army, believed to be headed by Ezzat Ibrahim al Douri, a 
			former close aide to Saddam.
 
 After the fall of Saddam to the U.S.-led invasion in 2003, officers 
			from the old Iraqi army who had not been reconciled to the new order 
			collected in the Mosu l area. The city's proximity to the border 
			with Syria allowed Baathists - Saddam's political party - and 
			Islamic radicals freedom of movement.
 
 U.S. AND IRAN INTERESTS COINCIDE
 
 On the advance, a member of the Mujahideen Army, consisting of 
			ex-military officers and more moderate Islamists, said: "We were 
			contacted by ISIL around three days before the attack on Mosul 
			asking us to join them. Speaking honestly we were reluctant to join 
			as we were not satisfied they could do the job and defeat thousands 
			of government troops in Mosul.
 
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			"When ISIL entered Mosul and swept out government forces positions 
			in hours ... Only then did we decide to join forces and fight with 
			them as long as we had a sole objective to kick Maliki forces out of 
			Mosul and remove injustice."
 The pace of events means that now, an alarmed Shi'ite Islamic 
			Republic of Iran, which in the 1980s fought Saddam for eight years 
			at a time when the Sunni Iraqi leader enjoyed quiet U.S. support, 
			may be willing to cooperate with the "Great Satan" Washington to 
			bolster mutual ally Maliki.
 
 The idea is being discussed internally among the Tehran leadership, 
			a senior Iranian official told Reuters, speaking on condition of 
			anonymity. "We can work with Americans to end the insurgency in the 
			Middle East," the official said, referring to the sudden escalation 
			of conflict in Iraq.
 The U.S. State Department said Washington was 
			not discussing Iraq with Tehran.
 Thrusting further to the southeast after their seizure of Mosul in 
			the far north and Saddam's hometown of Tikrit, ISIL entered two 
			towns in Diyala province bordering Iran.
 
 Saadiyah and Jalawla had fallen to the Sunni Muslim insurgents after 
			government troops fled their positions.
 
 Iraqi army units subsequently subjected Saadiyah and Jalawla to 
			artillery fire from the nearby town of Muqdadiya. ISIL fighters 
			eventually withdrew from Jalawla and well-organized Kurdish 
			Peshmerga fighters took over. Iraqi army helicopters fired rockets 
			at one of the largest mosques in Tikrit on Friday, according to 
			witnesses. There were no further details available.
 
 "CHANCE TO REPENT"
 
 Giving a hint of their vision of a caliphate, ISIL published sharia 
			rules for the realm they have carved out in northern Iraq, including 
			a ban on drugs, alcohol, cigarettes and an edict on women to wear 
			only all-covering, shapeless clothing.
 
 ISIL militants were reported to have executed soldiers and policemen 
			after their seizure of some towns.
 
			
			 
 On Friday, ISIL said it was giving soldiers and policemen a "chance 
			to repent ... For those asking who we are, we are the soldiers of 
			Islam and have shouldered the responsibility to restore the glory of 
			the Islamic Caliphate”.
 
 Residents near the border with Syria, where ISIL has exploited civil 
			war to seize wide tracts of that country's east, watched militants 
			bulldozing tracks through frontier sand berms.
 
 ISIL has battled rival rebel factions in Syria for months and 
			occasionally taken on President Bashar al-Assad's forces.
 
 ISIL's Syria branch is now bringing in weapons seized in Iraq from 
			retreating government forces, according to Rami Abdulrahman, head of 
			the Syrian Observatory for Human Rights monitoring group. But its 
			fighters appear to have held back in Syria, especially in their 
			eastern stronghold near the Iraqi border, while their Iraqi wing was 
			making rapid military gains.
 
 At Baiji, near Kirkuk, ISIL fighters ringed Iraq's largest refinery, 
			underlining the incipient threat to the oil industry.
 
 Further south, militant forces extended their advance to towns about 
			an hour's drive from Baghdad, where Shi'ite militia were mobilizing 
			for what could be a replay of the ethnic and sectarian bloodbath of 
			2006 and 2007. Trucks carrying Shi'ite volunteers in uniform rumbled 
			to front lines to defend Baghdad.
 
 SADR HOLDS FIRE
 
 Despite the call to arms from Sistani, influential Shi’ite cleric 
			Moqtada al-Sadr, who led revolts against U.S. forces, has not called 
			on his followers to mobilize. At Friday prayers, his faithful were 
			told to wait for directions in the coming days on how to form “peace 
			regiments” that will defend holy sites.
 
 Maliki's army already lost control of much of the Euphrates valley 
			west of the capital to ISIL last year. With the evaporation of the 
			army in the Tigris valley to the north, the government could be left 
			with just Baghdad and areas south - home to the Shi'ite majority in 
			Iraq's 32 million population.
 
 ISIL has set up military councils to run the towns they captured. 
			“'Our final destination will be Baghdad, the decisive battle will be 
			there' - that’s what their leader kept repeating," said a regional 
			tribal figure.
 
 (Additional reporting by Oliver Holmes in Beirut, Ziad al-Sinjary in 
			Mosul Isabel Coles in Arbil, Steve Holland and Mark Hosenball in 
			Washington; Writing by Peter Millership and David Alexander; Editing 
			by Mark Heinrich and David Storey)
 
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