US forces step up pressure with advance on Najaf shrine

US FORCES and Shi'ite militants fought fierce battles yesterday near a revered shrine in Najaf, as the US military stepped up pressure on the insurgents to quickly hand over the holy site to Shi'ite religious authorities.

Tanks approached within 250 metres of the Imam Ali Shrine, where many militants have sought refuge, the closest they have come to the compound in recent days. US snipers were on rooftops around the shrine, witnesses said.

Gunfire rang throughout the streets and black smoke rose over the Old City neighbourhood, where much of the fighting has been centred.

Earlier yesterday, militants fired mortars at US troops, who responded with artillery, residents said.

Marine Major Jay Antonelli said militants hiding in a garage about 350 metres from the shrine's outer wall fired rocket-propelled grenades and sniper rifles at US troops, who responded with artillery and mortars.

Speaking in Baghdad, Maj Antonelli said US troops were trying to secure the city, but were being fired at from the shrine compound and other areas. "We're not doing any offensive operations. This is all in response to them," he said.

Maj Antonelli also said militants in the shrine compound fired mortars at the governor's office in Najaf. There were no immediate reports of casualties.

The size of the militant force in the Old City appeared to have greatly decreased yesterday with the US advance, witnesses said. Militant medical officials said at least two insurgents were killed and four others injured.

In Baghdad's heavily Shi'ite Sadr City neighbourhood, an explosion, apparently from a US air attack, killed four people and injured nine others yesterday, said Dr Qasim Saddam, director of Sadr Hospital.

The renewed clashes in Najaf appeared more intense than in recent days as US forces sealed off the Old City. But Iraqi government officials said they intended to resolve the crisis without raiding the shrine.

"The government will leave no stone unturned to reach a peaceful settlement," Iraqi National Security adviser Mouaffaq al-Rubaie said. "It has no intention or interest in killing more people or having even the most trivial damage done to the shrine. We have a vested interest in a peaceful settlement."

Iran has called on Muslim nations to hold an urgent meeting to deal with Iraq. Iranian President Mohammad Khatami repeated denials of claims by some Iraqi officials that his country supports al-Sadr.

"We have never taken sides in favour or against any group or faction in Iraq," Mr Khatami said.