Looks alot like civil war to me.
"Prime Minister Ibrahim al-Jaafari criticized U.S. and multinational forces for shooting at Iraqi civilians who act suspiciously near patrols or military areas, but a spokesman for the U.S. command blamed the problem on the growing use of suicide car bombs as an insurgent weapon.
"Terrorists, through use of suicide (vehicles), have caused this predicament," said Lt. Col. Steven Boylan. "They have affected the normal level of trust that people have for one another and have made it difficult to distinguish between normal traffic and a grave potential threat."
Al-Jaafari said such cases should be handled in a "civilized" way, such as shooting at tires instead of passengers."
http://news.yahoo.com/news?tmpl=story&cid=514&e=4&u=/ap/20050710/ap_on_re_mi_ea/iraq