In Northern Iraq Kurdish forces have said they will hand over control of the oil-rich city of Kirkuk to US forces.

Kurdish troops advanced into the city against US orders yesterday.

Then, Turkey threatened to send its troops across the border. The US invited “military observers” into Kirkuk, and the Kurds backed down.

Washington is assuring Turkey the Kurds will not be allowed to control Kirkuk and its oil resources, or to declare an independent state in northern Iraq.

Meanwhile, US special forces are involved in heavy fighting with Iraqi forces near Syrian border.

• Ilene Prusher, Istanbul Bureau Chief/Mideast correspondent for the Christian Science Monitor.