The US-led coalition has made dramatic progress, apparently killing a key figure in Osama bin Laden's al-Qaeda network, amid reports that the Taliban have decided to abandon their stronghold of Kandahar.
In a major blow to al-Qaeda, Mohammed Atef, believed to be a key architect of the September 11th attacks on New York, was killed in a US air raid on Kabul earlier this week, according to US officials.
Atef, an Egyptian, was a key military strategist in the network and seen as effectively bin Laden's second in command.
The news of his death came amid unconfirmed reports that the Taliban were abandoning their spiritual base of Kandahar. According to the Pakistan-based Afghan Islamic Press, Mullah Mohammed Omar, the Taliban leader, ordered the pull-out to avoid further civilian casualties from relentless US air strikes against the southern city. The reports said Mullah Omar had decided to leave the city after discussions with two local tribal chiefs who were leading opposition to the Taliban. The withdrawal, if confirmed, would mark the collapse of the Taliban's hard-line Islamic rule in Afghanistan.
Except for a besieged pocket of territory in Kunduz, in the far north, the regime would control no major cities and only a few provinces in the south of the country. However, the Taliban could be planning a new phase of guerrilla warfare from mountain bases
Senior US officials said last night they remained doubtful about the reports of withdrawal from Kandahar. However, the coalition is now fully engaged in trying to oust the Taliban, as well as closing the net on bin Laden.
Western military forces were deploying yesterday in different areas of Afghanistan, with British marines at the Baghram air base near Kabul and French marines arriving in the northern city of Mazar-e-Sharif. France confirmed last night it was also sending combat aircraft to the region.
US special forces on the ground in Afghanistan are engaged in combat and are killing Taliban troops, according to US Defence Secretary Mr Donald Rumsfeld. "They are killing Taliban," said Mr Rumsfeld, adding that no US troops had been killed.
Mr Rumsfeld said commandos from other allied countries were also engaged in fighting without specifying which countries he was referring to, although British and French are the only other Western troops known to be in the country.
US officials said they were quickly shutting down bin Laden's freedom to move. Pakistan last night vehemently denied an Iranian radio report that he had fled to Pakistan, as US bombing of Afghanistan continued despite the start of the Muslim holy month of Ramadan.
A Pakistani government spokesman said the claim appeared to be an attempt to create turmoil and confusion. "It is preposterous and mischievous." he said
The state-run Iran radio quoted an unnamed "informed source" yesterday as saying bin Laden had probably fled for his life across the border near the remote and inaccessible region of Tirah in north-western Pakistan.
The United States is understood to have several hundred special operations forces both with the Northern Alliance, which drove against Kabul and other northern cities, and on the ground in the south, with tribal groups that rose up against the Taliban. Mr Rumsfeld said US special forces in the south were looking for information and "interdicting" roads, as well as directly engaging Taliban and al-Qaeda who refused to surrender.
"The total effect of it is that it is becoming less and less hospitable for al-Qaeda and Taliban to be around," he said. Meanwhile, armed followers of tribal leader Mr Hamid Karzai and former Kandahar governor, Mr Gul Agha, have established positions in southern Afghanistan to take on the Taliban.
The forces of the two commanders entrenched themselves after the Taliban refused to surrender - although there were reports of them retreating south late yesterday, A nobleman of the Popalzai tribe and advocate of a Loya Jirga, or grand council, to decide on a post-Taliban government, Mr Karzai has been in central Afghanistan since shortly after the US bombing began on October 7th.
He is drumming up support among local tribes for deposed former king Zahir Shah, and has fought at least one skirmish with Taliban forces. Mr Agha crossed into Afghanistan earlier this week to join the anti-Taliban struggle.