WASHINGTON - A senior U.S. official says the State Department will not renew Blackwater Worldwide's contract to protect American diplomats in Iraq when it expires in May.
The official tells The Associated Press that the contract will expire because of the Iraqi government's decision to deny Blackwater a license to operate.
The Iraqis informed the State Department last week of the cancellation, which came amid lingering outrage over a September 2007 shooting in Baghdad's Nisoor Square that left 17 Iraqi civilians dead.
The State Department said today that it is still considering its options in the wake of the denial of Blackwater's license.
