Lebanese troops exchanged fire with militants on the run today, as the military swept a Palestinian refugee camp and surrounding areas in northern Lebanon to try to capture the last holdouts after a climactic battle.

The Lebanese military today said it had largely defeated al-Qaida-inspired Islamic militants, over-running their positions inside a Palestinian refugee camp, but gunfire and artillery blasts continued as troops pursued remaining fighters.

People flooded out of a besieged refugee camp in Lebanon last night after three days of fighting between Lebanese troops and Islamic militants.

There was shock and disbelief at the fall of Baghdad among Arabs today – and also anger at marines wrapping an American flag around a statue of Saddam Hussein.