IRAQ’S prime minister ordered Shi’ite fighters to lay down their weapons and leave the holy city of Najaf last night, but fighting raged on with US helicopter gunships pounding guerrilla positions.

Spain has completed the withdrawal of its peacekeeping troops from Iraq, Prime Minister Jose Luis Rodriguez Zapatero said today.

Spain’s withdrawal of its troops from Iraq should not harm long-term relations with the United States, Foreign Minister Miguel Moratinos said today, adding that the country would honour its international commitments and remain steadfast in the fight against terrorism.

The new Spanish Socialist prime minister today abruptly ordered his troops home from Iraq.

Spanish troops in Iraq will be withdrawn unless the United Nations takes over both political and military control of the situation there, Socialist leader Jose Luis Rodriguez Zapatero said today, hours before he was expected to win approval as prime minister.

Militiaman loyal to an anti-US Shiite cleric controlled large swathes of three Iraqi cities today after clashes with US-led coalition forces, while US marines backed by airstrikes fought insurgents for the second day around a mosque in the Sunni Muslim stronghold of Fallujah.

An American soldier was killed today and another was wounded when their convoy was ambushed in northern Iraq.