Militants with possible links to al Qaeda seized about 40 foreign 
hostages, including several Americans, at a natural-gas field in 
Algeria, posing a new level of threat to nations trying to blunt the 
growing influence of Islamist extremists in Africa.
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WSJ Pentagon correspondent Julian Barnes 
joins The News Hub from Defense Secretary Leon Panetta 's press corps in
 Rome, where hours ago he declared the Algeria attack an act of 
terrorism. WSJ's Drew Hinshaw has the latest on the ground from Bamako, 
Mali. Photo: AP.
As security 
officials in the U.S. and Europe assessed options to reach the captives 
from distant bases, Algerian security forces failed in an attempt late 
Wednesday to storm the facility.
A French effort to drive Islamist 
militants from neighboring Mali that began with airstrikes last week 
expanded on Wednesday with the first sustained fighting on the ground. 
France's top target, al Qaeda in the Islamic Maghreb, or AQIM, claimed 
responsibility for the Algeria kidnappings, calling it retaliation. The 
claim couldn't be verified, although AQIM has its origins in Algeria and
 operates across a swath of Africa. 
Defense Secretary Leon Panetta said the U.S. would take "necessary 
and proper steps" in the hostage situation, and didn't rule out military
 action. He said the Algeria attack could represent a spillover from 
Mali. 
Reuters
                
About 40 foreigners were 
abducted in a raid on the In Amenas gas facility, above. An Islamist 
group fighting the French in neighboring Mali claimed responsibility for
 the attack. 
 
 
 
U.S. and 
European officials said Wednesday that they received reports that three 
Americans had been kidnapped, out of a total of nine U.S. staff working 
at the site, a gas field in east-central Algeria, along the Libyan 
border operated by 
BP  
BP.LN -0.24%
 PLC, Norway's 
Statoil ASA  
STL.OS +0.77%
 and Algerian energy company Sonatrach. 
U.S.
 officials have struggled for a year or more to devise a response to the
 many Islamist militant groups, some with ties to al Qaeda, across 
northern and western Africa. 
"We have been concerned about Mali, 
because they would use it as a base of operations to do exactly what 
happened in Algeria," Mr. Panetta said.
With intelligence reports "streaming 
in" on the Algeria siege, according to a senior intelligence official, 
some U.S. officials said confirming early suspicions that AQIM was 
involved was complicated by the group's loose structure.
The militants at the complex are believed to be headed by Mohktar 
Belmokhtar, a member of AQIM who has been a top target of the Algerian 
military for years, said Bruce Riedel, a former Central Intelligence 
Agency analyst who is now a counterterrorism fellow at the Brookings 
Institution.
In late 2012, Mr. Belmokhtar set up a group apart from AQIM, calling 
it al Mouthalimin, or Those Who Sign with Blood. If he is behind 
Wednesday's raid, it would suggest the commander continues to share the 
broader objective of the al Qaeda franchise.
Al Qaeda has rarely taken American 
hostages, however. If AQIM is involved, the operation represents a "big 
step up" for a group that has long been considered by the U.S. as a 
lesser terrorist threat than other al Qaeda branches, said Bruce 
Hoffman, an al Qaeda specialist and professor at Georgetown University. 
"This 
obviously was planned for some time," he said. "The fact that they can 
flex their muscles like this and choose the timing shows they had the 
ability to take advantage of this opportunity."
There are a number of options for 
freeing the hostages, said Seth Jones, an al Qaeda specialist at Rand 
Corp., including ransom negotiations by BP, U.S. government negotiations
 and a U.S. military operation after significant intelligence collection
 on the site.
The U.S. has used special-operations 
forces in recent years in Afghanistan, Somalia and elsewhere when 
launching rescue operations to free hostages taken by militant groups. 
But none of the rescues has involved large numbers of hostages.
While Algeria may not be an easy 
destination for American forces, the U.S. military has been bulking up 
its presence in Africa. There are an estimated 2,000 U.S. personnel at 
Camp Lemonier, a joint U.S.-French base in Djibouti, that also serves as
 a base of operations for U.S. special-operations forces as well as Air 
Force drones that conduct lethal missions in Yemen.
The Algerian government is likely to 
resist an American-led military rescue, though they would probably 
accept U.S. intelligence support, said Mr. Riedel.
Algerians said the hostage crisis revived their deepest fear of 
seeing AQIM, a group whose main roots are in Algeria, spread from their 
strongholds in Mali to sow havoc in bordering nations.
"The minute the French military started pushing AQIM groups from the 
south of Mali, it was quite evident they would move north and into 
Algeria," said Adbelhamid Si Afif, a senior member of Algeria's 
pro-government party Front de Libération Nationale. "They have the power
 to shake up the entire region."
The militants, after raiding the energy complex, took positions 
inside living quarters there with a number of Algerian and foreign 
workers, the Algerian government said.
Algeria reported two deaths in 
Wednesday's raid, a Briton and an Algerian, but reports of the number of
 casualties and hostages varied widely.
Norwegian Prime Minister Jens 
Stoltenberg said 13 Norwegians were involved in the hostage situation. 
"This is one of the most serious hostage situations to affect Norwegian 
citizens" and companies, he said.
The U.K. confirmed that British citizens
 were being held. The French government said it couldn't confirm the 
presence of French nationals in the base. 
BP said that contact with the site, 
named In Amenas, was extremely difficult. In Amenas harbors nearly 50 
oil and natural-gas fields, linked to the northern coast through several
 pipelines.
Sonatrach didn't have any comment on the situation.
French military forces joined Malian 
troops on Friday in battling Islamist rebels in the West African nation,
 amid Western fears that insurgent groups with links to al Qaeda could 
destabilize the region and gain the ability to strike overseas.
French officials have said they feared 
the campaign could lead jihadist movements to target French and Western 
interests in retaliation. Interior Minister Manuel Valls said France's 
internal and external security services are "particularly vigilant" amid
 a "very strong and permanent," terrorist threat in France.
Algeria, which has traditionally 
championed a noninterventionist policy and had voiced reservations about
 any foreign military role in Mali, allowed French combat jets to fly 
through its airspace and said on Monday that it would close its southern
 border with Mali. 
Analysts said they were skeptical that 
Algeria, although the strongest military force in the region, would 
succeed in sealing the border. 
"It's possible to reinforce control on 
that border, but closing it is virtually impossible," said analyst 
Mohamed Chafik Mesbah, a retired officer of the Algerian army.
On Wednesday, Republican lawmakers cited the attacks in Algeria as 
well as last year's attack on a U.S. Consulate in Libya to press the 
Obama administration to step up its efforts against al Qaeda.
"The Obama Administration needs to have a clear and focused policy on
 eliminating the threats that diverse al Qaeda affiliated groups pose to
 the United States and to Americans working abroad off of the usual 
battlefields," said House intelligence committee chairman Rep. Mike 
Rogers (R., Mich.)