Battles kill 13 in Sadr City

U.S. and Iraqi forces killed at least 13 gunmen in heavy battles overnight around Baghdad's Sadr City, the U.S. military said on Saturday, but authorities went ahead and eased a two-week-old blockade of the slum.

Cars were allowed in and out of Sadr City through some entrances, although other routes remained blocked and the sound of fighting was still audible on Saturday morning.

A U.S. military statement described a "complex" battle in the slum, a stronghold of militiamen loyal to Shi'ite cleric Moqtada al-Sadr. Residents described the clashes as among the worst fighting there since Iraqi forces launched an offensive into the area a week ago.

The Sadr City fighting, we well as fierce battles in the southern city of Basra between security forces and Sadr's Mehdi Army militia late last month, has thrust the Iraq war back onto the centre stage of the U.S. presidential election campaign.

U.S. forces fired at least one Hellfire missile from drone aircraft and two rounds from the main battle gun of an M1 tank against fighters who targeted them with roadside bombs, rifles and rocket-propelled grenades, the military said.

"No U.S. or Iraqi army soldiers were seriously injured and we went on to complete our mission," Major John Gossart, executive officer of the battalion involved in the fighting, said in a statement.

Police said seven people had been killed and 17 wounded in the overnight fighting. Sadr City's two hospitals said they received at least 33 wounded.

Despite the fighting, the Iraqi government's Baghdad security spokesman, Major-General Qassim Moussawi, said the situation was stable and the overnight clashes would not interfere with long awaited plans to lift the blockade.

"If more such clashes take place, we will deal with them by raiding the targets in an intelligent way," he said, adding that some roads were still shut to clear away bombs.

The blockade has led to skyrocketing food prices and days of claustrophobia for residents in the densely populated slum, which is under nightly bombardment. Residents said they were relieved to get out but wary about the future.

"I went today to university and it felt to me like a new fresh day in my life after two weeks of being isolated from the world," said law student Ahmed Kadhim.

But Nadeem Qasim, a civil servant in the water department, said he would not be optimistic "as long as the Iraqi army vehicles are still there and U.S. planes hover over the city. It means the problems and bombardment may resume".

LOUDSPEAKERS

As the fighting raged overnight, loudspeakers on mosques blared out speeches in support of Sadr's Mehdi Army fighters.

"We will not allow the Americans to enter the city whatever happens, if we lose our lives and our sons," they called out.

A Reuters correspondent who spent the night inside Sadr City said U.S. helicopters and jets flew overhead before midnight and several of the aircraft could be seen firing missiles.

The sound of heavy gunfire erupted in several parts of the slum, and fighters could be seen on the streets carrying rocket-propelled grenades and machine guns into battle.

Hundreds have died in clashes between Sadr's followers and U.S. and Iraqi forces since late last month, when Prime Minister Nuri al-Maliki launched a crackdown against the militia in the southern city of Basra.

U.S. Defence Secretary Robert Gates said Sadr would not be treated as an enemy if he played a peaceful political role.

"Those who are prepared to work within the political process in Iraq, and peacefully, are not enemies of the United States," Gates told reporters at the Pentagon on Friday.

A top aide to Sadr, related to the cleric by marriage, was shot dead in the Shi'ite holy city of Najaf on Friday.

Assassinations have been a frequent part of the power struggle between Shi'ite groups in southern Iraq, but the slaying of someone so close to the cleric could increase tension. Police imposed a curfew in Najaf, and a Reuters correspondent in the city said it was quiet on Saturday.