Iraq repeatedly attempting to assert its sovereignty has been demanding changes and terminating the Blackwater era is one of them.

The State Department will not renew Blackwater Worldwide’s contract to protect American diplomats in Iraq when it expires in May, a senior U.S. official said Friday. The official told The Associated Press that the contract will lapse because of the Iraqi government’s decision to deny Blackwater a license to operate.

The Iraqis informed the State Department last week of the denial, which was made amid lingering outrage over a September 2007 shooting in Baghdad’s Nisoor Square that left 17 Iraqi civilians dead.

For in depth information read Jeremy Scahill’s Blackwater: The Rise of the World’s Most Powerful Mercenary Army‘.