UNITED NATIONS, Dec 8 (Reuters) - U.N. Secretary-General Kofi Annan warned on Friday that soaring violence in Iraq made a regional war in the Middle East a growing possibility. "High levels of civilian casualties and displacement on a daily basis are breeding an increasing sense of insecurity and deep pessimism among Iraqis," Annan said. "The prospects of all-out civil war and even a regional conflict have become much more real" since the secretary-general's last report, issued three months ago, Annan said. "Therefore, the challenge is not only to contain and defuse the current violence but also to prevent escalation." His comments appeared to go beyond earlier expressions of concern about the deteriorating situation in Iraq. He said in a BBC interview aired earlier this week that Iraq was in the grips of a civil war and that many people were worse off now than under Saddam Hussein. Annan, who leaves office on Dec. 31, made the comments in his final report to the U.N. Security Council on the world body's assistance mission in Iraq.
