BAGHDAD, Iraq (AP) — Deputy Prime Minister Tariq Aziz appeared yesterday at a news conference, putting to rest rumours that he had abandoned the Baghdad regime of Iraqi leader, Saddam Hussein.

Armed members of Saddam’s Baath party fanned out across Baghdad in a show of force, while other residents hunkered down before a US ultimatum expires for the Iraqi leader to leave Iraq or face war.

Iraqi officials remained defiant, with members of Parliament meeting in extraordinary session and declaring their loyalty to Saddam, even as US armoured units in the Kuwaiti desert began taking up positions closer to the Iraqi border.

“We are dedicated to martyrdom in defence of Iraq under your leadership,” the legislators said.

Speaker Saadoon Hammadi said it was “absolutely unthinkable” that Saddam would bow to US demands and flee: “He will be in front of everyone. He will fight and guide our country to victory.”

Dozens of Baath party members, in their hallmark olive-green uniforms and armed with Kalashnikovs, deployed in clusters of fours and fives across Baghdad. Some of them stood behind the hundreds of sandbagged fighting positions that have been erected around the capital over the past two weeks.

US President George W Bush gave Saddam and his sons until 4:00 am today (0100 GMT) to leave the country.

Iraq’s people, Hammadi said, “stand united … against treacherous forces and are ready for all sacrifices in their legitimate defence of their honour, principles and sanctities.” They are “standing beside him (Saddam) in his holy struggle in defence of the independence of the country,” he added.

During the parliamentary session, legislators shouted, “With our blood, our souls, we redeem you, Saddam!” and waved their fists in the air.

Outside on a hazy day, the streets of Baghdad were quieter than usual, with some shops shuttered and light traffic, even during rush hour. Along the road from Baghdad to Jordan, gas stations were crowded but traffic was thin.

Some gas stations along the sand-swept route had emptied their tanks trying to match the demand, with the cost of a litre (a quart) of gas soaring to US$1 from its usual two cents. Even a pickup truck fitted with a machine gun and driven by Iraqi soldiers was forced to wait in line to refuel.

Shelves in many shops in the commercial heart of Baghdad were nearly empty after store owners moved their merchandise to warehouses, fearing bombing or looting. At the Al-Saydia food market, shoppers showed a preference for onions and potatoes. “They can keep for a long time, so people are buying them in big quantities,” said vegetable vendor Mohammed Adnan.

The dinar, Iraq’s currency, lost ground against the US dollar, slumping to about 2,900 to the dollar, compared with 2,800 on Tuesday and 2,600 a week ago.

The exodus of diplomats continued, with ambassadors from Greece and France taking the overland road to Jordan. Many of the hundreds of foreign journalists covering the standoff have also left, with only several dozen now in the capital.

India plans to pull out more than 50,000 of its expatriates from Iraq’s neighbour, Kuwait. The Philippine government has laid out plans for its 1.4 million workers in the Gulf and set up an evacuation centre in Kuwait, where 60,000 Filipinos work.

Indonesia plans to evacuate its 35,000 workers. Thailand has urged 1,237 Thais in Kuwait to return home, and said it was prepared to evacuate about 2,000 of its nationals working in Israeli cities.