Shiite militants fought US and Iraqi forces around Baghdad’s Shiite district of Sadr City early today despite a call for calm by anti-American cleric Muqtada al-Sadr following the assassination of one of his top aides.

Two American soldiers were killed and one was wounded when their tank was hit by an explosive north of Baghdad last night.

At least three Iraqis were killed and more than 60 were injured in a mortar attack on the notorious Abu Ghraib prison, US military spokesmen said today.

THE rattle of Abrams tank tracks on the streets of central Baghdad sent shares and the dollar soaring while hitting the price of gold and oil.