U.S. Officials Worry About Potential 'Tet Offensive' in Iraq

Bush administration officials are concerned about a spectacular attack or series of attacks designed to coincide with the September release of a critical progress report in Iraq, a senior administration official confirmed to FOX News on Sunday.

The official, however, would not go into any specifics about an upcoming National Intelligence Estimate that reportedly suggests Iraq is in for more violence despite political strides made by that country's parliament and recent military successes on the ground.

A U.S. official in Baghdad said the military has been warning since mid-June that terrorists may try a spectacular attack. Despite progress made in the surge, Al Qaeda in Iraq has the capability today of launching a large-scale attack on a soft target like a market, for example, the official said. Fox News