Baghdad militants 'agree ceasefire'

Shiite groups have brokered a reported ceasefire with militants fighting US and Iraqi forces in Baghdad's Sadr City as the country's army launched an offensive in the northern city of Mosul against al Qaida's main bastion in Iraq.

The ceasefire is now effective, said Sheik Salah al-Obeidi, an aide to radical Shiite cleric Muqtada al-Sadr.

The ceasefire may not necessarily end the seven-week old clashes in Sadr City, the stronghold of al-Sadr's Mahdi Army, as the US military has blamed clashes on breakaway groups.

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