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KUWAIT CANCELS STATE OF ALERT

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Kuwait has canceled a state of alert it declared in an oil dispute with Iraq, and it appeared the crisis is over, a Kuwaiti source said.

"It was all a summer cloud that has been blown away," the source said Thursday, speaking on condition of anonymity.The alert followed Iraqi charges that Kuwait had stolen Iraqi oil worth $2.4 billion, and Iraqi threats of retaliation. Kuwait had appealed to other Arab states for support in the dispute with its much more powerful neighbor.

Despite the apparent easing of tensions, officials in Baghdad reported that thousands of Kuwaitis visiting Iraq were heading home. Iraqi dailies continued to accuse Kuwait and the United Arab Emirates of "usurping Iraq's rights."