The Iraqi government said it had revoked the license of Blackwater USA, a private security company that provides protection for American diplomats across Iraq, after shots fired from an American convoy killed eight Iraqis:

Abdul-Karim Khalaf, a spokesman for Iraq’s Ministry of Interior, said the authorities had canceled the company’s license and barred its activity across Iraq. He said the government would prosecute the deaths, though according to the rules that govern private contractors, it was not clear whether the Iraqis had the legal authority to do so.
“This is a big crime that we can’t stay silent before,” said Jawad al-Bolani, Iraq’s interior minister, speaking on satellite television. “Anyone who wants to have good relations with Iraq has to respect Iraqis.”

Associated Press has the story.
The Washington Post provided the details of the incident.
Christian Science Monitor does the blog on news coverage.