Hedges worked for 15 years as a foreign correspondent for The New York Times. He was based in the Middle East for five years, serving for four of those years as the Middle East bureau chief. He covered the war in the former Yugoslavia as the Balkan bureau chief based in Sarajevo. He later covered Al Qaeda in Europe and the Middle East from Paris.  Three of Hedges' articles were based upon the stories of Iraqi defectors, who had been furnished to Hedges by the Information Collection Program of the US-funded Iraqi National Congress. The program promoted stories to major media outlets in order to orchestrate US intervention in Iraq in the aftermath of the 9/11 attacks. Most significant of his reports in this period was a November 8, 2001, front-page story about two former Iraqi military commanders who claimed to have trained foreign mujahedeen how to hijack planes without using guns. Hedges quoted a man whom he believed to be an Iraqi general: "These Islamic radicals ... came from a variety of countries, including Saudi Arabia, Yemen, Algeria, Egypt, and Morocco. We were training these people to attack installations important to the United States". The two defectors also asserted there was a secret compound in Salman Pak facility where a German scientist was producing biological weapons.  According to Mother Jones: "The impact of the article ... was immediate: Op-eds ran in major papers, and the story was taken to a wider audience through cable-TV talk shows. When Condoleezza Rice, then George W. Bush's national security adviser, was asked about the report at a press briefing, she said, 'I think it surprises no one that Saddam Hussein is engaged in all kinds of activities that are destabilizing.'" As late as 2006, conservative magazines including The Weekly Standard and National Review continued to use this article to justify the invasion of Iraq.  It later was revealed that the story which Hedges reported was "an elaborate scam". The defector whom Hedges quoted, who had identified himself as Lt. General Jamal al-Ghurairy, was a former sergeant. The real Ghurairy had never left Iraq. Hedges said that he had taken on reporting this account at the request of Lowell Bergman of Frontline, who wanted the defectors for his show but could not go to Beirut for the interview. The trip had been organized by Ahmed Chalabi, whom Hedges considered to be unreliable. Hedges said he had done the piece as a favor to Bergman, explaining, "There has to be a level of trust between reporters. We cover each other's sources when it's a good story because otherwise everyone would get hold of it." Hedges had relied on the US embassy in Turkey for further confirmation of the man's identity.  Hedges wrote two more articles that year that were informed by Chalabi-coached defectors. The second one, claiming that Iraq still held 80 Kuwaitis captured in the 1991 Gulf War in a secret underground prison, was also found to be baseless.

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Most significant of his reports in this period was a November 8, 2001, front-page story