Iraq's parliament approved key leadership positions today in the first step towards forming a new government, after a breakthrough deal that returns Shiite Prime Minister Nouri al-Maliki to office.

Iraq’s prime minister Nouri al-Maliki will return to power for another four-year term after MPs working late into the night agreed on a deal to form a new government.

US vice president Joe Biden landed today in Baghdad on what appeared to be a dual mission: to visit US troops during the Fourth of July weekend and coax Iraqi leaders into ending their government impasse.

Thousands of Iraqis marched through the city of Najaf today for an annual march to mark the anniversary of the fall of Baghdad.

IRAQ regained full control if its towns and cities yesterday as US troops pulled back, six years after the invasion to topple Saddam Hussein.

Panic engulfed thousands of Shiites marching across a bridge in a religious procession today after rumours spread that a suicide bomber was about to attack, triggering a stampede that killed at least 695 people.

In a rare move, the Iraqi government criticised the state-run television network today for “whipping up emotions” by airing footage from the bombings at a Baghdad bus station and accused a leading Arab satellite station of airing false reports.