As the military and humanitarian crisis deepened in Iraq's second city of Basra, there were conflicting reports about hostilities involving Iraqi and British forces and the alleged suppression of a Shia Muslim revolt by troops loyal to President Saddam Hussein.
British military sources at the coalition headquarters in Camp As Sayliyah in Qatar were guarded in their response to reports that Shia Muslims had attacked a Basra office of the ruling Baath Party.
British forces nonetheless began a full-scale artillery assault on Basra yesterday amid the dramatic but unconfirmed reports that a popular revolt to unseat Saddam's loyalists had begun.
US and British aircraft dropped 1,000-lb satellite-guided bombs on the Baath Party headquarters in the heart of the city, part of an operation to wipe out the city's leadership. Unconfirmed reports said Iraqi troops, mainly Sunni Muslims, had suppressed the Shia attackers with mortars and were in turn shelled by British forces, in an episode lasting 15 minutes.
Maj Gen Peter Wall, chief of staff of British forces in the Iraqi conflict, told The Irish Times last night: "There are indications that have come to light in the last few hours that there may be some movement amongst the civilian populace which is slightly out of character and potentially quite helpful, but I would guard against reading too much into it at this stage."
Another British military source said it was not clear whether there had been an isolated incident or an outright rebellion.
Iraq's information minister, Mr Mohammed Saeed al-Sahaf, denied the reports. "I want to affirm to you that Basra is continuing to hold steadfast," he told the Arabic language Al Jazeera television.
The Tehran-based Supreme Council of the Islamic Revolution in Iraq claimed a revolt had, in fact, broken out. "We confirm an uprising is taking place in Basra, but we cannot give more details for the time being," a spokesman, Mr Mohamed Hadi Asadi, said.
Meanwhile, concern continued to grow about a possible humanitarian disaster in Basra. The UN Secretary General, Mr Kofi Annan, has already warned of a catastrophe unless electricity and water supplies were restored. Reports yesterday said the inhabitants only had access to untreated water, polluted by sewage.
British commanders were considering calling in paratroopers and Royal Marine Commandos to assist the battle for Basra after acknowledging it might be necessary to engage in street combat to secure the city.
The decision to contemplate reinforcements came as the 7th Armoured Brigade, the Desert Rats, which is spearheading the drive to Basra, continued to face stiff opposition, both at the edges of the city and beyond.
Royal Scots Dragoon Guards, one of four Desert Rats battle groups, were forced to retreat about 15 km to avoid a potential ambush by Republican Guards.
Artillery shells were fired into the city, where 1,000 Iraqi fighters are believed to be sheltering, some using civilian buildings as bases.
There were further fatalities last night from so-called "friendly fire" with the deaths of two British soldiers, members of the Queen's Royal Lancers, who were accidentally killed by their own side "during a period of multiple engagements from enemy forces on the outskirts of Basra".
The British Prime Minister, Mr Tony Blair, is to meet President Bush later today to discuss the progress of the war at a summit in Camp David, to be followed by talks in New York with Mr Annan on Iraq's post-war reconstruction.
A sandstorm slowed down the coalition's moves against Baghdad although bombing resumed last night. The stage is now set for what may prove the decisive battle of the war on the outskirts of Baghdad, between coalition forces and the Medina Division of Iraq's elite Republican Guard. The Pentagon reported last night that up to 500 Iraqi troops died in a battle near Najaf, 60km south of Baghdad.