KABUL, Afghanistan — The U.S. campaign in Afghanistan suffered a double blow today when the Taliban broke off peace talks and President Hamid Karzai demanded NATO troops immediately pull out of rural areas because of anger over a U.S. soldier’s alleged killings of 16 civilians.

The setbacks effectively paralyze the two main tracks for ending the 10-year-old war. Part of that exit strategy is to gradually transfer authority to Afghan forces while another tack is to pull the Taliban into some sort of political discussions with the Afghan government.

Karzai also said he now wants Afghan forces take the lead for countrywide security in 2013, a year ahead of schedule. He spoke as Afghan lawmakers were expressing outrage that the U.S. flew the soldier suspected in civilian killings to Kuwait Wednesday night when they were demanding he be tried in the country.