The United States faces a “grave and deteriorating” situation after three years of war in Iraq, a high-level commission warned bluntly on Wednesday, recommending enhanced diplomacy to stabilize the country and hopefully permit the withdrawal of most combat troops by early 2008. “There is no path that can guarantee success, but the prospects can be improved,” the commission said after an eight-month review of a war that has resulted in the deaths of more than 2,900 U.S. troops and grown so unpopular at home that it helped trigger a Democratic takeover of Congress in last month’s elections. Full Story