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U.S. forces battled insurgents in southern Baghdad, shaking the Iraqi capital into the early hours of Wednesday with some of the heaviest explosions and gunfire in weeks.

Witnesses reported hearing the blasts kilometers away and some residents said U.S bombers were in action. The U.S. military would only confirm its troops were involved in Operation Iron Justice, part of the new tactics adopted to counter a relentless insurgency.

Soldiers of the U.S. Army's Fourth Infantry Division bow their heads in prayer, at a pre-Christmas breakfast service in the mess hall of their barracks in Tikrit, northern Iraq on December 23, 2003.  [Reuters]

More than 200 U.S. soldiers have been killed since Washington declared major combat over on May 1 in attacks officials have blamed on loyalists of ousted President Saddam Hussein and foreign fighters.

U.S. soldiers arrested Muslim militants with links to the most wanted Iraqi official still on the run. The guerrillas signaled defiance with the assassination of a senior Iraqi judge.

The fighting in Baghdad erupted in an area known as the "mechanic district" because of its many mechanic shops.

A Reuters witness said helicopters were flying over the city and explosions could be heard several kilometers away in central Baghdad.

"We don't see any flashes of impact, we're just hearing sounds," a Reuters witness said from the center of the capital.

A U.S. military spokeswoman in Baghdad said: "We cannot comment on ongoing military operations, however this is linked to Operation Iron Justice that involves explosions and aerial activity."

The blasts were the most sustained in some time in the Iraqi capital. On November 18 a series of heavy explosions shook Baghdad as U.S. forces stepped up their assault on guerrillas in an operation dubbed "Iron Hammer."

The U.S. military has stepped up its hunt for insurgents since the capture of Saddam earlier this month.

EXTREMISTS

American officials said they hoped the arrests of the Muslim militants would help lead them to Izzat Ibrahim al-Douri, one of Saddam's top aides and the most-wanted former Iraqi official still sought by U.S. authorities. "We detained three individuals in the extremist religious organizations with ties to ... Izzat Ibrahim al-Douri," Lt. Col. William Adamson, head of a U.S. task force in Baquba, told Reuters Tuesday.

Al-Douri, who has a $10 million reward on his head, is number six on a list of 55 Iraqis most wanted by the United States and is suspected of playing a role in directing insurgents.

The arrests raise important questions on ties between Saddam loyalists and Islamic militants suspected of crossing Iraq's borders to wage holy war on occupation troops.

The detentions over the past 24 hours were significant because they point to a tangible link between Saddam loyalists and Muslim militants.

Adamson said arrests after Saddam's capture would make it easier to track down more guerrillas.

But there was no sign that violence will ease anytime soon.

Youssef Khoshi, a top investigating judge in the northern city of Mosul, was killed by three men in a car Monday night.

"He was shot six times from behind in the back. He died immediately," police Major Ali Mohammed said Tuesday.

The slaying was part of a wave of attacks in recent weeks on officials working under Iraq's U.S.-led administration, including policemen, oil executives and other judges.

As U.S. troops prepared for Christmas away from home, a senior official in the U.S.-led administration ruling Iraq, the Coalition Provisional Authority, warned guerrillas may strike during the holiday period.

"It is wise to expect it could be a rough period. Psychologically they want to prove they have the capability. We are not taking any chances," the official, who requested anonymity, told reporters.

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