On the day of a deadly attack against US troops, Iraq’s finance minister said he saw signs of improvement in his country’s security.

The Iraqi government declared a 60-day state of emergency throughout most of the country yesterday, as US and Iraqi forces prepared for an expected all-out assault on rebels in Fallujah.

At least 125 people were killed and hundreds were wounded in attacks on Shiite shrines in Baghdad and the southern city of Karbala today, Iraq’s Governing Council said.