British forces said they killed eight Iraqi militiamen this morning in a street battle on the edge of the southern city of Basra.
Captain James Moulton said ten British tanks and armoured vehicles entered a shanty town just ahead of their positions on the city's edge, looking for militiamen, and were fired on.
He said eight of the fighters were killed in the battle, which was continuing.
A Reuters correspondent saw Iraqi civilians running for cover or hiding under a truck as explosions rattled the area amid gunfire.
