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Clashes in Najaf

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Muqtada al-Sadr, a young Iraqi Shia cleric, forwarded his four major demands, in the wake of a weeklong skirmishes in and around city of Najaf with the Coalition/Iraqi forces. First, the Coalition should liberate Iraq or at least Najaf, the Shiite holy city. Second, the Iraqi Transitional Government should be replaced with a Shia theocracy. Third, his associates/followers should be set free. Fourth, pardon should be awarded to his militiamen.

A full scale sustained aerial bombardment, and other ground offensives, have been started by the US occupation forces on the Iraqi occupation resistance fighters led by their leader Moqtada Sadr holed up in and around the sacred and holy Imam Ali bin Abu Talib shrine in Najaf.

1- Is there any hope for the peaceful settelment between coaliotion forces and militia ?

2- What would be the consequences of fighting around holy and sacred city of Najaf ?