and they include basra, where security has been tightened.ld's second biggest oil producer after saudi arabia. in february, its oil production reached a 35-year high. but the international energy agency is warning the fighting is now putting global oil production at risk. well, i have been speaking to dr. salami who an international oil economist and says iraq is almost completely dependent on oil to fuel its economy. >> normally the price of oil is very susceptible to any political developments. what we are witnessing in iraq now is a very major development. when could impact very adversely on the oil price and on iraq's oil exports and production. iraq, until now, has been producing oil and is still producing oil exporting since the bulk of the iraqi production comes from the southern fields, oil fields near basra. consequently we haven't seen yet a stoppage. but if the situation deteriorates further, it means that iraq might reduce the oil production and the foreign oil companies operating on iraq might withdraw for security purposes. so i

he went down there to basra.e realized his political stake was on the line and went down to basra and moved his headquarters down there and commanded and controlled the way only an iraqi could, with four cell phones in front of him. general petraeus laid on advisors, air power, attack helicopters, drones, an airborne infantry battalion, logistics. it was that push from the multinational force in iraq that allowed the charge of the knights to succeed. maliki is doing sort of the same thing. he has moved his headquarters up to samarra. that is the battlefield right now. the home of the golden dome mosque. the shrine, the fourth holiest shrine in shia islam. he will defend it but he doesn't have multinational force iraq to back him up anymore. so it is going to be a very dicey affair. 25% of the army by recent reports is combat ineffective. and he has no tribal support the way we had tribal support in 2007 and 2008. so, what can we do about it? well, first i agree with jon, we shouldn't do anything about it militari

i think it is worth remembering just one key battle of the last twelve years, that was the one in basra whereas a surprise to the shias and the sun nies, all of a sudden, maliki sent his troops to protect the sunnis in basra. that was a bold move. i think the obama administration -- if they hadn't had the signal we were leaving so soon, then maliki's worst instincts might have been curtailed because he was willing to try to help the sunnis at one point but once we signaled that we were leaving, i could understand why you would say who is going to be my biggest protector and it was iran. >> he asked us to leave. >> he asked us to sign a status of forces agreement. >> which was balanced against us. >> right. and he didn't counterthe negotiations. no immunity. they walked away from the negotiating. >> this is iraq, jesse. >> i know it's iraq. >> it's a thousand years old. >> we have the opportunity but we lack the political will and leadership to get a very good negotiation done that would have prevented a situation like this. that is why people are upset. that's why the veterans out there

as we federalize the entire basra would have been a province. we will not have the problems we are fighting today. everything you look at today has an economic underlying problem that we could at fixed four or five years ago. >> thank you very much. countryy in this understands the argument, so i think there is resonance here. i would like for you to explain to us, that is not what is used to encourage the people to fight, to kill, to get killed and to sacrifice and start wars. we have an actual sectarian divide on the ground amongst the people. would you like to give us a sense of how many people within the sunni community or the shia community are really committed to an antagonistic program, whether it's on the rise or the way in our people see through it, or is it going to be useful to any demagogue to use it and keep the struggle going? >> economist make very poor generals and they cannot provide the motivation for soldiers. economists can give numbers on and that's pretty much all we can do. politicians can use the economist numbers and tur

>> it would be we're seeing the start of civil war, al maliki is moving army divisions from basra in southern iraq to try to reinforce the capital. this is a very serious situation. it would be wrong to just say that this is a problem for iraq and syria and to dismiss it. these militants tens of thousands of them are very anti-american and don't see this fight as just being limited to this region. many of them also want to carry out attacks in europe and the united states. this is not just a problem more the middle east. this is a problem for everybody. >> iraq's leaders have now asked for u.s. assistance for air cover. i'm joined by michael leiter and counter terrorism and national security analyst and from the brookings institute, michael o han lynn and colonel jack jacobs, medal of honor recipient and msnbc analyst. let's talk about this group. they are in syria, they are in iraq. how have we let them become so dominant and the maliki government so weak? the isis is an offchute of al qaeda and iraq. it has broken with al qaeda leadership because they are so extreme. the fight in s

. >> bp's assets are down in the south, near basra, a long way from the production being increased inesponse to requested by the government. we are, of course, very vigilant. we have removed nonessential production staff out of there and have continued to operate. >> yusef is in dubai. how are some of the other cups in the region reacting to the news that the u.s. is putting even a small amount of troops on the ground now in iraq. you also had the saudis yesterday saying they didn't want to see any u.s. involvement in iraq. >> absolutely. it placed the blame nor the crisis firmly in the hands of the iraqi central government. what we've heard from the qatar reform mip sister. but the comments from the regional and economic kingpin as part of the world are very different from what we've heard from the iranian leadership. the iranian deputy foreign minister basically rejected and said there were no negotiations under way over mutual conversations in iraq with the united states and said that they would do whatever is necessary to assist the central government of iraq. and that shows you t

and he went down there to basra. he realized his political stake was on the line and he went down there basra and moved his headquarters down there and mandmand commanded and controlled only the way an iraqi could, with four cell phones in front of him. general petraeus laid on advisers, air power, attack helicopters, drones, airborne infantry battalion, logistics. it was that push from the multinational force iraq that allowed the charge of the knights to succeed. now, maliki is doing sort of the same thing. he has moved his headquarters up to somara. that's the battlefield right now. the home of the golden dome mosque. the shrine. the fourth holiest shrine in shia islam. he's going to defend it. but he doesn't have multinational force iraq to back him up anymore. and so it's going to be a very dicey affair. 25% of the army by recent reports is combat ineffective. and he has no tribal support the way we had tribal support in 2007 and 2008. so, what can we do about it? first, i agree with jon. we shouldn't do anythin

but the idea of them getting down there militarily to basra, which is an important export area for the oil, that's unlikely at the moment. i think they've got a holding place here. they would love to have that. >> what will they do with it? >> they sell it. they actually can. they can intercept the oil pipelines. they sold some of this oil up through syria into turkey. they make money on it. they made a lot of money on it. >> as you hear about this, and your knowledge with iraq, what is your concern, number one? >> you know what i'm worried about? >> what? >> i think that isis won't get into baghdad. i don't think they're going to be able to take on the iraqi military in terms of assaulting the city in some sort of traditional military sense. i'm worried about inside the city. the sunnis who are in there now already setting car bombs against shia targets. nouri al maliki has given power to the militias on the streets walking around with guns in all this. you go back to 2006, where those same militias reacting to sunni insurgents setting bombs in places like sam rah and in the capital,

it's leading to the jordanian and syrian and iraqi borders, and towards the south from basra to kuwait. >> reporter: iraq strengthened its air force, accepting delivery of fighter jets from russia, which will be seep as a snub to the american government. it hasn't delivered the first of 34 fighter jets. they say the u.s. is stalling. an accusation deno idea. relations between nouri al-maliki and the u.s. had already been strained. this likely will further damage relations. it's not just abroad. a key political bloc will not tanned the -- taped the opening of -- attend the opening of parliament. >> translation: we will not attends in the political powers put a -- not attend unless the political powers put a roadmap. >> reporter: this will be a blow. they are not an ally of the prime minister, but has sway with those that are. >>> as the fighting continues to raise in iraq, the prime minister is fighting to keep his job. calls for a parliamentary boycott are the latest setback for nouri al-maliki, as he grapples with deep divisions across the country. >> reporter: he may be miles away fr

it will not affect exports because most of iraq's oil exports go from the south, from basra. however, it will affect the local consumption of gas and fuel, and it again will boost the morale of the rebels who are advancing in other parts of iraq. the government is trying to retake different towns and cities, including the refinery. the government is making statements, rapid and quite a lot of statements trying to reaffirm, but in other parts of iraq as well. >> the white house has urged maliki to reach out to iraqi sunnies and kurds in order for him to be able to get more u.s. aid. the prime minister prime minister has apparently done the opposite. accused the terrorists of hatching a regional plot to tear the government apart. and has asked formally for american air strikes to combat i.s.i.l. >> i don't think so, the american president, president barack obama did mention clearly that he wants iraqi leaders to be more open and to try and bring in all the opponents, the political opponents in this political process. remember, the prime minister, 94 nouri maliki has problems wi

add another 400,000 to 500,000 barrels a day from basra where they have plans to increase, exxon, bp, shell, all plan to do that. >> reporter: what about here in kurdistan where they're still fighting with the central government of baghdad that doesn't want to let them export? does that result in all this? >> it's too soon to tell. it's a long ways away. there's been a fight over the last ten years over the same issues. >> thank you so much for joining us. we really appreciate it. >> anytime. >> reporter: he's the founder and editor in chief of the iraq oil report. back to you. >> michelle caruso-cabrera live for us in erbil, iraq. guys, how do we trade this? joe, pete, you've been right on the money when this is the place to be in terms of the trade. >> well, i think it's important to understand for the viewers out there, this is about energy equities. this is not about chasing the price of oil. you don't want to be doing that right now. year to date is up 2%. wti is up -- >> wti was up 4% last week alone. >> okay. but follow the energy equities, we just heard from ben and we heard a

they have done that in basra, which is shia, they are setting up the groups. it's along sectarian lines. what that means remains to be seep. we see this in 2006. what happens is iraq was plunged into sectarian war. >> thank you for joining us from baghdad. >> security concerns in iraq prompted the united states to relocate u.s. contractors based there. president obama says he's considering all options to help the iraqi government. >> iraq will need more help. it will need more help from us and the international community. my team is working around the clock to identify how to provide the most effective assistance to them. i don't rule out anything. we have a stake in making sure that jihadists are not getting a foot hold in iraq or syria. >> we have more from washington d.c. >> the message from the disagrees developed over the day. first they were keen to emphasise that they wanted to build the capacity of iraqi forces to fight back the advance of i.s.i.l. fighters, and urged prime minister nouri al-maliki to be inclusive in its role. as they developed many op

exxon has branch offices in both baghdad and basra. bp, that other oil giant, also reportedly evacuating some 20% of its staff over concerns over workers' safety. this comes on the heels of the news that iraq's government and their troops have repelled a siege on iraq's largest oil refinery, that is just north of baghdad, which at one point, terrorists had taken control of. it underscores the global reliance on the region's oil supply, which is now at a nine-month high when you look at prices. today, president obama later on this afternoon will meet with congressional leaders to discuss and debate the crisis in iraq. what, if any, the u.s. response should and will be. there seems to be very little agreement on what role, if anything, the u.s. should play in stopping the terrorists' bloody march toward baghdad and the politics grow uglier. in today's "wall street journal," former vice president, dick cheney, rips obama's handling of iraq from the troop pullout to today's indecisiveness. in that op ed, cheney and his daughter, liz, write

strategising in terms of future airstrirks, seeing americans bailout nouri al-maliki when he went into basra, that's an important role to play. this is about stopping the i.s.i.s. surge, rolling back what they have taken in terms of mosul, and other places. the more interesting question, what you do about an enmitt are the hq is in syria. i think there's a lot to be said about what happens there. the other point you make is an important one, that the americans do know that they can't be seen to be the air force of a sectarian deposit in baghdad. that a lot of background to the conflict has been tendencies of nouri al-maliki, and you need a national project, bringing in the sons of iraq, bringing in counterinsurgency tactics to make sure you have an iraqi state that is for all its citizens, not just certain ethnic sectarian people in it. >>> pet ray us is quoted as saying there should be strikes against the leadership of i.s.i.s., and says it's an organization with an ability to under take terrorist acts beyond middle east. >> there's no doubt that a group too extreme for al qaeda is a threat

she's an refugee living in northeast philadelphia her father lives in basra, southern iraq, while he is removed from the violence her friend and families are not as fortunate. >> we cannot go out. at 6:00 o'clock you cannot go out. >> reporter: her father says video like this clips shown on the news of attacks by militant groups. he was eight years old when two of her own uncles were killed after speaking out begins saddam hussein. >> we just want to keep them safe. >> reporter: the nationalities services center which help relocate immigrants and refugees says it has relocated close to 800 iraqis to northeast philadelphia, so much so that this part of the bustleton avenue is becoming known as little baghdad and it is one of the first places many stop right here, right here. she owns that restaurant. two employees are from iraq. >> i can see my friend but next day they disappear. >> reporter: as she watches what happens next, she hopes to hear her father's voice and one day see them again. in northeast philadelphia, jane carabao, cbs-3 "eyewitness news". >>> stay with "eyewitness news

in basra and baghdad hundred of volunteers answering the calls by the country's shop shiite clerics to take up arms and fight against the insurgents. nuri al maliki's government is dominated by shiite iraq and maintain strong ties with iran while the insurgents are sunni muslims n.recent months malaki has consolidated power in favor of the shiias and alienated the sunni population in iraq, they in turn welcoming with open arms the insurgents adding to the complications really in iraq. the fact that the pro-american kurds in the north are taking advantage of all of this chaos capturing an oil-rich city. as a response the u.s. government has spent the "uss g.h.w. bush" to the persian gulf but the white house is still weighing its openingses. any decision tonight convenient in iraq may come way too late. the country is disintegrating before our very eyes. arthel? >> thanks very much. eric? >> with the sunni militants on the doorsteps of iraq's capital just 60 miles away and the white house considering those possible military options, what, if anything, can the administration do? or is it

iraq she just al-qaeda linked isis militants have taken over a vital oil facilities in the city of basra wherever their final target is baghdad with the reportedly planning to create a new islamist state within the ruins of the country. is already falling apart as ortiz guy in h.s. you can reports. iraq is on the verge of erupting isis is controlling a predominantly sunni part of the bach shia sphere there further onslaught kurds could split off at any moment isak tarion war is brewing now the government will have to make a strategic choice putting the entire army to attack and take back that city and risk a much wider sectarian fight or i have this as you have a group in control of an area that was a response with all the consequences not just for iraq for the region and for the world i says belongs to a faction of sunni islamic committed to radical fundamentalist convictions that they seek to impose on other muslims their advances have long stopped being just iraq's problem these darker green spots are where the population is predominantly shiite you can see iran is the main shiite pow

here in the mainly shia south in the cease of basra, young men queue up to join the army.y say they want to fight isil and its associated forces. with such chaos across northern iraq, decisions have to be made. decision that his may well see young men like these fight. imran kahn, al jazerra, baghdad. >>> the united nations security council is due to discuss in a closed session the unfolding turmoil in iraq. our diplomatic editor james bays is at the u.n. headquarters in new york, joins me now. what can we expect, james? >> reporter: that meeting has started, jane, going on behind closed doors. start of the meeting is a briefing by the u.n.'s man in iraq nikolai, he's given the ambassadors via video link the latest information on the ground from inside iraq. i have spoken to a anybody of diplomats about the current situation, some of the information we are getting here in new york, and i know this is conflicted some of it by what we are hearing from the ground. but diplomats telling me that the iraqi government now seems to be saying that it believes that the oil refinery,

the bulk of the iraqi oil is in whichuth near basra produces 70% of iraqi oil.inister's office have sent their kids to basra because it is secure there. the nightmare situation would be if ice is manages to blow up one of the shiite shrines and that could set the whole middle east on fire potentially and most of saudi arabia in oil is produced in a shiite dominated area in saudi arabia. >> this is a morning must read how the u.s.bout response is muddied by politics -- is there an american exceptionalism that does not match up? >> no matter who was in the white house, there is a conceit in washington that we can have debates endlessly and the facts on the ground never change but that is not the case. we cannot expect the opposition not to change. the other problem is that american politicians often want to fit national security into the american the local calendar. that does not work. we could look at george w. bush who ordered the initial withdrawal of u.s. forces largely because he wanted to give his successor a blank slate but ultimately, that is not based on

they were deployed from basra. we take a tour of what looks more like a ghost town than anything else. millions of dollars of u.s.-made equipment reused to wreckage. this is the command center. it's called burned out. it's not clear who was behind the fire. some say they destroyed as much as they could before running away. but it seems that everyone here left in a hurry. leaving everything behind. a prisoner register' registry and a manue manuel. this is a list of all the names of soldiers and officers, and their personal addresses. these are passport photos some of them with their names on them if they were were to get their hands on them, they would go after one by one. >> all the kurdish areas are under our protection. since 2004 we've been trying to explain we want to help protect people. now look at what a terrible fate. >> reporter: yet, this situation is some how a blessing. one of the main points of contention between baghdad and kurdish authorities is the debate over disputed territories. a large area of l

some of the staff from baghdad will be mooed to safer locations in basra and imam. mobile, three navy ships are on station in the arabian golf in case they are needed to evacuated american citizens. the pentagon are sending in troops to beef up security staff. for now the department of state is saying that the embassy in baghdad is open for business. >> i spoke to a senior professor at john op kins school of advance studies, i asked what role the u.s. should play. >> it's not a matter of responsibility, it's a matter of whether we can do something effective that will improve the situation. there may well be military things we can do. the president made a good start when he said first and foremost i want to know what the political plan is for iraq and he's right to insist on the political plan, because this problem originates in the advice of sectarian politics in iraq, pursued aggressively by the prime minister, who is popular. he con an election. so what you have got is a popular prime minister with a very sectarian vent and we have to get past the political proble

the west of the country, it's leading to the jordanian and iraqi borders, and towards the south to basra. there are no limits from islamic state of iraq and levant on this highway. >> iraq strepted eped the -- strengthened the air force by accepting the deliver of sukhoi 25 from russia, and will be seep as a snub to the u.s. government which has not delivered the first of 34 fighter jets that had been promised. iran is saying iraq is stalling. relations had already been strained. this will likely further damage relations. it's not just abroad. a key political bloc will not attend the opening session of parliament. >> the national coalition of parliament decided not to attend the first essential of parliament, unless the political powers put a roadmap to stop the security deterioration and save the country. >> this will about a blow. although the political block doesn't ally with the prime minister, it has sway with those that are. it's further indication of the pressure that nouri al-maliki is upped. >>> dr carol kirst ner's the l calafat declaration by sunni rebels is a powerful symbol

most of iraq's oil exports go from the south, from basra. however, it will affect the local consumption of gas and fuel, and again it will boost the moral of the rebels, who are advancing in different parts of iraq. the government is saying that they are sending reinforcements and are trying to retake different towns and sis, including the re -- cities, including the refineries. the government is making a lot of statements trying to affirm iraqis that their forces have the upper hand not only in beigy, but in other parts of iraq as well. >> the white house has urged nouri al-maliki to reach out to iraqi sunnis and kurds in order for him to get more u.s. aid. the prime minister apparently has done the opposite. he accused his political opponents of helping a regional plot to tear the country apart. in the meantime the government asked for american air strikes against i.s.i.l. under the circumstances, does it expect the u.s. to comply? >> i don't think so. because the american president - president obama mentioned clearly that he wants iraqi l

it will not affect exports because most of iraq's oil exports go from the south, from basra. however, it will affect the local consumption of gas and fuel, and it again will boost the morale of the rebels who are advancing in other parts of iraq. the government is trying to retake different towns and cities, including the refinery. the government is making statements, rapid and quite a lot of statements trying to reaffirm, but in other parts of iraq as well. >> the white house has urged maliki to reach out to iraqi sunnies and kurds in order for him to be able to get more u.s. aid. the prime minister prime minister has apparently done the opposite. accused the terrorists of hatching a regional plot to tear the government apart. and has asked formally for american air strikes to combat i.s.i.l. >> i don't think so, the american president, president barack obama did mention clearly that he wants iraqi leaders to be more open and to try and bring in all the opponents, the political opponents in this political process. remember, the prime minister, 94 nouri maliki has problems wi

meanwhile in basra and baghdad, hundreds answering the call by iraq's political leaders to take up arms. they are trying to dig in and protect the capital. iraq is splitting up along religious and ethnic lines and iran is threatening to jump into the conflict, pledging to help the government of prime minister maliki who is a shiite muslim. as iraq desends into chaos, the aircraft carrier uss george h.w. bush moves into the golf. >>> we're going to continue into sergeant bowe bergdahl. he begins the reintegration process and the u.s. army is now investigating what led to his capture. army officials are appointing a two-star general to find out how and why bergdahl left his base in afghanistan. after he disappeared that night, he became a p.o.w. for five years. now he's settling into a routine at brooke army medical center in san antonio, texas and army officials say he's working with doctors to gain physical and emotional stability. meanwhile, the controversial trade to free bergdahl for those five guantanamo bay detainees is raising a question about the future of gitmo. >> reporter: we

from the syria and iraqi borders, to the south from basra. there are no militants on this highway. >>> iraq strengthened its air force by taking delivery of the sukhoi, fighters yet from russia, it will be seen an is snub to the u.s. government who so far has not delivered the first of 34 f-16 fighter jet. they say america is stalling. denied by washington. relations between nouri al-maliki and the u.s. has been strapped. this latest delivery will likely damage further relations. >> it's not just abroad. a key bloc will not attend the opening session of parliament. the national coalition decided not to attend parliament. unless the political powers put a roadmap to stop it, they'll save the country. >> this will be a blow. this bloc didn't ally the prime minister, it has sway with those that are. it's an instance of the pressure that nouri al-maliki is under. >>> on tuesday, iraq's legislature is said to meet in baghdad. many are hoping for a new leader to be elected. it will expose divisions in iraq. zeina khodr has this report. >> reporter:

it has branch offices in baghdad and basra. bp also vee backity -- evacuating workers. at one point, terrorists controlled most of the site. oil prices are at a nine-month high. president obama is going to discuss the crisis in iraq. there seems to be little agreement about what role we should be playing. >> anderson cooper, terrorist fighters seem to be approaching day by day. have government soldiers and civilian volunteers managed to thwart any of that advance. >> reporter: we've seen fighting up in the north, that oil refinally. the latest word i have on that, there are reports that some have fled but a core group are still there, are still holding that base and are still fighting off insurgents which basically control entire area around that base. that would be a huge loss for the government if they lost the largest oil refinally in the origin. and a town about 37 or so miles from baghdad, security is tight here in the capital. there are a lot of checkpoints but as i've seen out on the streets over the last 24 hours here, tensions are high and everybody seems to be

replicated with others in basra, bacuba. it was a show of force. it was a defensive army, designed to protect baghdad and other shrines. muqtada al-sadr is at pains to point out that they are peace platoons, they are not going on the offensive. >> this is a show of strength, a show of force. it's not a march of parade, a show of power in support of the prime minister. >> no, that's right. prime minister nouri al-maliki, and muqtada al-sadr have been at log are heads with each other and muqtada al-sadr openly criticised prime minister nouri al-maliki. this was a show of force designed to convince the people of iraq and the shia community that they are able to defend themselves. the key thing is you have to understand that they wanted to defend the shrines and the towns. one of them, when hit by al qaeda in 2006, it sparked a sectarian war in the country, lasting almost three years. that is why the shia militias are showing the force and that's why we see them on the streets. >>> let's look at what the volunteers will be fighting for. sunni fighters

as far as the ports in basra go, they have always been secure and they are secure right now. i think that's starting to simp into the market a bit. the brent wti spread started out around $5 when it first started. it's moved out to almost $10, and we've had a pretty good run in the brent, in the products, and it only makes sense that now that some of the fear has subsided that it quieted up like that. >> so what's your targets near term for oil? >> there's no real target to the up side. it just depends on how the news comes out and if these ports are affected. >> peter, thank you very much. >> you're welcome. >>> over to dominic chu for a mark flash. >> utility stocks are the single worst-performing sector in the s&p 500. despite a huge boost from integris, the sector is down about 0.7%. it's siring on the latest m & a move of the summer, so simon, utilities down big, but at least one stock with a nice day. >> dom, thank you, another day of key housing data is out. existing home sales posting big gains. diana? >> reporter: home sales took a larger than expected bump up. that

but looking at that demonstration by the militia and the sadr city of baghdad and basra in the south and many other militias that have been activated, it's very clear that the potential for a sectarian war is there. what we've seen, taking a territory by the -- essentially by the sunnis backed by isis or fronted by isis is another dimension of that, fareed. >> does it feel like in this context that american military advisers or even strikes could make a difference? >> it's going to have to be a long-term strategy. and certainly isis where they're taking some of their weapons and where they have safe haven and sanctuary is across the border in syria, indeed, in the same way that taliban and afghanistan could hide across the border in pakistan. so any effort to take out isis inside iraq to weaken them to help -- to help, if you will, strengthen the iraqi army and reclaim territory will have to necessarily include a component that strikes at isis' bases. it cannot succeed unless that happens. it's hard to see how 300 advisers can provide enough intelligence and deconflict the situation

they are organising mass recruitsment from basra all the way up to other places, included where they are getting people ready to join the army. it's interesting that he has criticised the senior command for leaving their posts in mosul. what he's also said is any ordinary soldiers that left the post, that wants to go back to the army will be allowed an amnesty and rejoin the unit. >> we'll see what happens in the coming hours. >> thank you for joining us. >> now, the conflict in iraq is complex. it's compounded by tribal divisions, history and politics. within that is the country's religious and ethnic make-up. the majority in iraq is from the muslim shia sect. 60 to 65%. muslim sunnis account for 32 to 37%. it's this sect leading the rebellion against the iraqi government. then there are the ethnic kurds making up 17% of the population, and they want more autonomy in the north. major charles hayman is a military analyst serving in the army from 1962 to 1976. thank you for your time, sir. it seems that the iraqi army, regardless of where they are at the moment, is in disarray. the pr

the former basra regime, the saddam hussein loyalists are probably going to be very unhappy with thes wants to have. it's very harsh, islamic -- a harsh interpretation of islamic law and those are two main challenges that isis really face in holding on to territory and being able to maintain control. >> this may take a lot of time, more time than some iraqis are willing to give it. more time than the u.s. is willing to give it. thank you for being with us. >>> ahead of this hour, a parents worst nightmare, your child far from home and in jail. it's the reality of the mother of this jailed marine. she's going to join us with an update on his condition coming up next. narrator: this is the storm sea captain: there's a storm comin narrator: that whipped through the turbine which poured... surplus energy into the plant which generously lowered its price and tipped off the house which used all that energy to stay warm through the storm. chipmunk: there's a bad storm comin! narrator: the internet of everything is changing how energy works. is your network ready?" that's why i always choose

5,300 personnel in iraq, about 2,000 of them americans at the embassy in baghdad and kons lates in basrang so many people in a war zone will be an extremely difficult task. unlike the evacuation of the u.s. embassy in saigon in 1975, where american negotiated safe passage for 1,200 americans, here the u.s. must be able to secure airfields with the u.s. military no longer on the ground. and iraqi forces fleeing as extremists advance. the militants are seizing airfields and have surface to air missiles which threaten pilots in an evacuation. the largest of its kind, ten times larger than any u.s. embassy in the world, the embassy in baghdad sits along the tigres river and cost taxpayers nearly a billion dollars to build and designed for a massive u.s. long-term presence. >> the embassy is very, very heavily fortified. we have extremely good security personnel and a lot of them. the embassy is set up to be self sufficient and the embassy can take a lot and it has. >> reporter: the 104-acre compound is bigger than the vatican with 22 buildings, pardon mes and olympic-sized swimming pool. les

the white house insists it is still weighing all of its options in basra, baghdad. hundreds of volunteers answering the call of the top shiite cleric to take up arms and to fight against these insurgents. right now the isis militants are only about 60 miles outside baghdad, and they control the major cities of fallujah, mosul, and tekrit. their goal to create a unified islamic state across iraq and syria. meanwhile, iran looks poised to jump into this conflict. iranian president rasan rahani saying his country is ready to help. nuri al-maliki is shiite and maintains strong ties with neighboring iran. the insurgents are sunni muslims. in recent months maliki has consolidated power in the hands of his fellow shia alienating the sunni population who, in turn, have been welcoming with open arms these insurgents. now, adding to all of the complications, the pro-american kurds in the north have taken advantage of all the chaos and have captured kirkuk cubing, an oil-rich city. if the u.s. were to intervene in iraq, they would do so essentially on the same side as iran. ba

but officials tell me if they can move some of those employees out to the north, to basra in the south, across to amman in jordan with a support office, this will ease some of the burden on the staff in baghdad if they need to, you know, ride this out for a while. additional additionally, if things take a turn for the worse and there has to be a full evacuation, this will also ease the burden of having to evacuate so many people at once. on the flip side of that, michael, these people are nearby, they can be brought back to baghdad if this crisis is over quickly. >> all right. thanks so much, elise there, also nic. earlier i discussed this increasingly grave situation with iraq's first head of state, allawi after the fall of saddam hussein and won more seats than nuri al malaki in the 2010 election only to be out-maneuvered in forming a coalition. we'll have more of this conversation later in the program and one thing to show you is his answer to a question of whether u.s. intervention of any type was a good idea. >> the u.s. is being asked to help out militarily, perhaps from the air.

those southern oil fields of iraq, where about 90% of their daily production goes through the port of basra. >> if they're wrong, general? >> if they're wrong, then your previous guest, again, i think is on the mark. i'd hate to pick a figure. >> general, i am wondering, we look at this, the volatility in the region, there are a lot of risks. this could just get out of control. you're quite trite say oil trades on the fears of that, and it rockets when big things aren't stable, that's less likely. you echo they can avoid disaster if things stabilize. but this has the potential of just redrawing maps in the whole region and changing the game well beyond just the short term. >> i think it goes beyond potential, neil. i honestly think that the iraq that we knew from 2003 through 2011 is probably gone forever. >> is that right? >> i think the kurds will wind up with an autonomous zone with no association with iraq. i honestly think that the sunnis have been so terribly disappointed in the maliki regime, i don't see them coming back, unless there's a distinct change in leadership and attitude. s

already a force on the ground, that swings through the arab marsh region in the south as well as into basrasion line is becoming very clear where the epic battle will occur between both sides. >> and the iraq government seems to be firmly fixed on a military approach and we heard them saying they are going to crush and surely there has to be a political solution as well because without it it looks like iraq will be carved out and each controlled by different groups. >> i think malachi's situation is he is out on his demise because he created a military country that is basically unable to fight. there is a lot of desertion going up and videos by isis is used to frighten others and serving its information purpose. i think that malachi will have a very difficult time trying to fix this situation if he is able to come out of this in one piece. >> thank you very much indeed for joining us and he is speaking to us live. >> thank you. >>> pakistan taliban says the war with the government and vowed to target the military as well as major operation targeting the fighters in the northwest and they sa

. >> you are talking about basra, the deeply shee yiet region there. i want to ask about the 300 u.s. military advisers heading over there now. how easy will it be for them to interface with the iraqi forces? how do you arrive on the ground and start talking to the majors and captains who are running the iraqi troops? >> not as hard as you think. all of these options are going to be experience in iraq. we were there for almost a decade. they have served with these iraqi forces and trained them. so they are going to bring those officers back. i had a conversation with people last night with the people at pentagon, they tell me their initial goal is to get several dozen in them and get them into the iraqi headquarters and assess just how bad off the military has become in the last three years since we've been there and see if it can be fixed and what it's going to take. and the problem will be if it's really bad, what do we do then? are the 300 going to be enough? is advice going to be enough or are we going to have to go another step and we get into the

it's miles from up in kurdistan, it's miles from basra, that's where all the oil is. and i suspect that the isil is smart enough to understand they don't want to do any damage to those oil facilities because eventually, they're going to want those oil facilities. so perhaps you are getting a little bit pressed on the upside here, but any correction, any 50 cent correction i think in brent, you want to be a buyer of front month brent, you want to be a seller of back month wti, it's for the sophisticated traders out there, that itself the pure play. >> dennis, thanks, good to see you. >> always good to be seen, tanks, mel. >> none of the fracking plays came up in our discussion when we talked about ways to play this turmoil. >> approach is not a true fracking, apache had the stealth run up towards $100 bucks, i think one of the analysts downgraded the stock, the price valuation range is still anywhere from here to 105 late in the cycle, apa is how i would play. >> emerging markets trading at a key level, tim, what are you seeing? >> it's interesting, as oil bumps up, yo

when he fought in basra, a very bitter fight, he was a front line war time commander. he seems to be on the front lines now but he's not doing the right thing. he's only mobilizing the shia community. he's not taking the opportunity to try to integrate some of the sunni elements into that wartime coalition. he's just going to perpetuate the divisions. his leadership is a fame e fail leadership. >> thank you. >> today u.s. officials captured a key suspect in connection with the september 11th attack in benghazi, libya. we have got the details next on "now." cut! [bell rings] this...is jane. her long day on set starts with shoulder pain... ...and a choice take 6 tylenol in a day which is 2 aleve for... ...all day relief. hmm. [bell ring] "roll sound!" "action!" [meow mix jingle slowly anright on cue.cks] [cat meows] ♪meow, meow, meow, meow... it's more than just a meal, it's meow mix mealtime. with great taste and 100% complete nutrition, it's the only one cats ask for by name. i got more advice than i knew what to do with. what i needed was information i could trust on

this highway is leading to the jordanian and syrian iraqi borders and towards the south to basra andthere are no militants from the islamic state of iraq and levant on this huh hoo i way. >> reporter: iraq has strene ended the air force by accepting the delivery of close support of fighters jets from russia. this will be seen as a snub to the u.s. government which so far hasn't delivered the first of 34 f-16 fighters jets that had been promised. the iraqis say the u.s. is stalling, an accusation denied by washington. relations between iraq's prime minister nouri al-maliki and the u.s. had already been strains. this latest deliver friday russia will only likely further damage relations. and it's not just abroad, what of the key political blocks won't attend the opening session of parliament on july 1st. >> translator: the national coalition has decided not to attend the first session of parliament. to distance ourselves from the consequences of the session. unless the political powers put a road map to stop the security did he tear oration and save the country. >> reporter: this will

premium because of the isis situation, folks thinking that isis could make their way down south to basra, where about 2.5 million barrels of oil are exported out of iraq every single day. i think now the market is responding, thinking that may not be the case, and i think the $10 to $12 premium was full-fledged civil war in iraq. so, i think we might see oil retreating just a bit as folks think now isis might be contained in the areas where they're in currently. >> what about the longer term damage this has potentially done to iraq's supply of oil, which was supposed to be the bulk of the opec supply coming on the market over the next five to ten years? >> i was in iraq in december and it was unstable then. i think now things have gotten worse. this is going to be a big year for iraq. there are 4 billion barrels of oil a day, they're at 2 1/2, targeting 9. >> 9? >> 9 million barrels a day is a huge amount of oil. if we lose that production, the elastic production in saudi can't make up for that, so we could see oil prices surging if they were to get toward the basra region. that's yet to

1,000 of those americans are leaving in fact for jordan or consulates in smaller iraqi cities like basra. 500 marines are also on their way to the persian gulf but there are no plans to actually evacuate yet. >>> now the state department says it is considering holding talks with a different kind of a partner -- iran, on how to combat militants in iraq. while iran's president has said he is willing to help, tehran is publicly rejecting the possibility of cooperating with washington. secretary of state john kerry cautiously saying, however, nothing's set in stone. >> look, we're open to discussions if there's something constructive that can be contributed. let's see what iran might or might not be willing to do before we start making any pronouncements. i think we are open to any constructive process here that could minimize the violence. >> state department spokeswoman jen psaki tweeted -- to be clear, open to political conversation with iran about threat from isil but not military cooperation. >>> chris darwell, a fox news digital politics editor is my guest right now. hard to keep this

if 9 old fields in basra are taken over by the enemy. i don't believe that will happen. i don't think the iranians will let that happen. i don't think the united states will let that happen. i don't think that nato will let that happen. $150 oil, you've got problem. whether that's recession, i don't know, but you have a big problem. you could say to me, what about inflation, all this money has been printed. i would say the real money supply is not really growing, i don't see an inflation problem at all. what i'm saying, show me an inverted kiffin, the 23rd five times tighter, i'll show you a recession, i don't see it. >> honorable sir, i will disagree. about oil, but also to your point. we have had inverted curves and not had a recession. your point is -- >> when? when? >> yes, yes, but every inverted curve hasn't met we've had a recession. every recession has had an inverted curve. there have been other times. >> i can't remember. may post-war 1945, '46. >> i'm sure our smart ought yen will let me know if i'm wrong. >>> let's go to energy, though. yes, oil prices are hi