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Islamic militants seized control of a weapons factory and a nearby town in Yemen's south Sunday, said a witness and security officials, as political turmoil around the country causes security to unravel.
Stocks fell sharply and oil prices spiked to their highest level in two years on Tuesday as investors worried about the increasingly violent unrest in Libya.
The State Department issued a travel warning Monday advising all non-emergency U.S. personnel to leave Libya, where anti-government protesters have been gathering for days amid turmoil throughout the Middle East and North Africa.
In the midst of mass uprisings and historic change in the Middle East, Secretary of State Hillary Clinton told a gathering of US diplomats Wednesday that "we are all in uncharted territory."
Iranian President Mahmoud Ahmadinejad sought to put the turmoil over the disputed presidential elections behind him and declared on national television that the contests were clean, fair and were the start of a new era.