U.S. puts Iraq strike 'on hold'

WASHINGTON (CNN) -- The United States has "put on hold" plans for large-scale retaliatory airstrikes on Iraq after a missile attack on a U.S. spy plane last month, Pentagon sources said Monday.

America is back to its usual policy of striking smaller targets that threaten coalition planes on an "as needed" basis in response to violations of the U.S.-imposed "no-fly" zone and attacks on U.S. aircraft by Iraqi air defenses, sources told CNN.

The decision was taken, sources said, because of concern that the negative reaction from U.S. allies in the region is not worth the limited effect the bombing would have on Iraqi air defenses.

Officials said the United States also has had difficulty in recent days finding appropriate targets because Iraq has dispersed most of its anti-aircraft missiles and radars in anticipation of a major strike.

MORE STORIES U.S.-led force rescues Iraqi tanker crew     RESOURCES Message board: Iraq

Meanwhile, Iraq continues to violate the no-fly zones, sources reported.

Sources said that on Saturday an Iraqi MiG-23 flew some 60 miles into the southern no-fly zone near where a U.S. predator unmanned aerial vehicle was conducting surveillance. The Iraqi jet left the no-fly zone before U.S. planes could respond.

U-2 spy plane

The United States also has returned to its usual naval complement in the Persian Gulf -- one aircraft carrier and attendant ships. It briefly had two carriers in the gulf last week when the USS Enterprise arrived to relieve the USS Constellation, which left Saturday.

On July 26, a military response was planned following an attempt to shoot down a U-2 spy plane over Iraq's southern no-fly zone, two days earlier, sources said.

The Iraqi Foreign Ministry later denied the attack on the U-2 and said the intended target had been a U.S. F-15 fighter.

Iraqi President Saddam Hussein has offered a reward for the shooting down of any allied plane patrolling the no-fly zones.

CNN Military Affairs Correspondent Jamie McIntyre contributed to this report.