South Yemen is falling under the control of al Qaeda-linked militants, who have begun to establish local administrations.

The Yemeni military has failed to reverse territorial gains by al Qaeda-linked militants.  Yemen’s defense ministry reports that seven militants, including an al Qaeda leader, were killed in clashes near the 25th mechanized brigade’s base outside of Zinjibar. Two snipers were also arrested.

U.S.-designated terrorist Sheikh Abdul Majid al Zindani called for the establishment of an Islamic state in Yemen. Zindani’s statement rejected the idea of a transitional council.

An oil tanker was on fire off the coast of south Yemen. Reports say that pirates fired a rocket-propelled grenade at the ship about 20 miles from Aden, causing the fire.

The Yemeni state is undergoing fragmentation as al Qaeda-linked militants seize control of the south. The current situation has increased al Qaeda's operating space in Yemen.