Abu Musab al-Zarqawi, the al-Qaida-linked militant who led a bloody campaign of suicide bombings, kidnappings and hostage beheadings in Iraq, has been killed in a US air raid north of Baghdad, Iraq’s prime minister said today.

American warplanes pounded the insurgent stronghold of Fallujah today after the city’s leaders suspended peace talks and rejected the Iraqi government’s demands to turn over terror mastermind Abu Musab al-Zarqawi.

IRAQ’S interim prime minister yesterday threatened military action against the main insurgent stronghold of Fallujah if residents don’t hand over Jordanian terror mastermind Abu Musab al-Zarqawi.