Leader of Al-Qaeda Osama bin Laden was killed in a US helicopter attack near Pakistan capital Islamabad early on Monday.
Leaders worldwide praised the killing as a dramatic success in the war against al Qaeda, a mood reflected in financial markets. The dollar and stocks rose, while oil and gold fell, on the view bin Laden's death reduced global security risks.
Obama may now also find it easier to wind down the nearly decade-old war in Afghanistan, begun after the Sept. 11, 2001, attacks on New York and Washington that killed nearly 3,000.
But the operation could complicate relations with Pakistan, a key U.S. ally in the battle against militancy and the war in Afghanistan. Those ties have already been frayed over U.S. drone strikes in the west of the country and the six-week imprisonment of a CIA contractor earlier this year.
A U.S. official said Pakistani authorities were told the details of the raid after it had taken place.
The revelation bin Laden was living in style will also put Pakistani officials under pressure to explain how he could have been right under their noses. Residents in Abbottabad said a Pakistani military training academy is near the compound.
"We must also reaffirm that United states is not and will never be at war against Islam. Bin Laden was not a Muslim leader, in fact, he slaughtered many Muslims," Obama said
US celebrations
Former US president George Bush called his death a "momentous achievement". But as the news of bin Laden's death spread, crowds gathered outside the White House in Washington DC to celebrate.
"The fight against terror goes on, but tonight America has sent an unmistakable message: No matter how long it takes, justice will be done," Bush said in a statement.
Besides September 11, Washington has also linked bin Laden to a string of attacks - including the 1998 bombings of American embassies in Kenya and Tanzania and the 2000 bombing of the warship USS Cole in Yemen.
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