The military says U.S. forces have killed at least nine militants in the latest round of fighting in Baghdad.
An Air Force AC-130 gunship strafed Shiite extremists after U.S. soldiers called for air support when they came under attack.
Iraqi health officials say 41 people, including women and children, have been wounded since yesterday in Sadr City.
The U.S. military is confirming that two civilians were wounded in a Hellfire missile attack in another neighborhood in the southwestern part of the city.
In Tehran, Iranian officials are saying they will not hold a new round of talks with the U.S. on security in Iraq until American forces end their assault against Shiite militias. It's the first official confirmation that Iran has decided to suspend the talks.