US troops open fire on Iraqi bank workers

American troops killed up to four bank staff on their way to work in Baghdad today after firing on their minibus.

The shooting happened in the city’s northern Shaab district, a Shiite militia stronghold, as the driver was collecting employees for the Rasheed bank.

The soldiers opened fire when the bus reached their roadblock and tried to drive through, killing four passengers police said.

The American military said the driver was travelling on a street restricted to cars only, and failed to heed a warning shot.

The US statement also said only two people were killed and four wounded.

Shaab is the same neighbourhood where masked gunmen killed 11 relatives of a journalist critical of the Iraqi government on Sunday.

Northern Baghdad’s top US commander, Colonel Don Farris, said some Shiite groups in the area were still getting weapons, training and funding from neighbouring Iran.

“I have not seen those attacks abate, and I have not seen any indication that they intend to stop,” Col. Farris said.

Iran has repeatedly denied US allegations that it helps Iraqi extremists. but Iraqi authorities said in August that Iranian officials promised Iraqi Prime Minister Nouri al-Maliki that they would stem the flow of weapons and ammunition smuggled to extremists in Iraq.

In the last few weeks, a half dozen US officials and commanders have commented on the promise – some saying it was still unclear whether Iran had abided by it and others saying it appeared Iran was following through because there had been a drop in the number of roadside bombs found.

President George Bush and Mr al-Maliki signed an agreement setting the foundation for a potential long-term US presence in Iraq yesterday.

Details of the military, economic and political relationship will be negotiated in 2008, with a completion goal of July, when the US intends to finish withdrawing the five combat brigades sent in 2007 as part of the troop “surge” that has helped curb sectarian violence.