by Jay Deshmukh
NAJAF, Iraq, Aug 23 (AFP) - US forces unleashed Monday a fresh wave of raids on positions held by firebrand cleric Moqtada Sadr`s militia in Najaf, where hopes of seeing a peaceful resolution to the bloody siege of a revered Shiite shrine were fast fading.
An AFP correspondent said the strikes -- which went on for almost an hour -- hit several streets which lead to the shrine and flames could be seen shooting into the sky near the golden-domed mausoleum.
While Mehdi Army presence at the gates of the compound and in the immediate surroundings appeared to have been scaled back over the past 24 hours, militiamen were thought to have redeployed in nearby streets.
The latest air raids could be a prelude for a fresh push by Iraqi government forces and the US army.
But the US military had no comment on the operation and it was difficult to verify whether the holy site itself had been hit or whether there had been any casualties.
A hole one metre (more than three feet) across was already punched into the outer wall of the shrine compound on Sunday night, scattering debris across the marble floor.
Sadr supporters said it had been caused by a missile fired by a US helicopter, although the US military denied it had targeted the shrine.
"Two rockets were fired from an American Apache. One hit the western wall of the shrine and the other a nearby hotel," said Sadr official Sheikh Ali Hussein Ali. The hotel is a known resting place for Mehdi Army commanders.
A US military spokesman said: "The fire was not directed at the shrine. It did not hit the wall or any other holy site in the area."
Serious damage to the mausoleum could inflame the already tense standoff around the shrine, as hopes that a deal struck on Friday for the fighters to leave the site evaporate with every new day of violence.
Sadr aides said Friday they would hand over control of the shrine to representatives of Shiite Islam`s most revered cleric, Grand Ayatollah Ali al-Sistani, but the agreement was still in limbo.
"There is no fresh development... There is contact between them and us but there are differences on forming the committee due to the security situation," said Sadr spokesman Sheikh Ahmed Shaibani, referring to proposals for a panel to carry out a full inventory of the shrine`s contents before the handover.
On Monday, the Iraqi media quoted Najaf police chief Ghaled al-Jazaeri as saying that Sadr had left the city, but one of his aides Sheikh Ahmed al-Shaibani insisted the young firebrand cleric was still in Najaf.
The Mehdi Army has occupied the Imam Ali complex since a first uprising in April.
Sistani, recovering in London after medical treatment, has been reluctant to take back the shrine without ensuring nothing is missing. The Mehdi Army is also unwilling to surrender control amid any suggestion of impropriety.
One team member from a landmark national conference, which tried but failed to meet Sadr last week in a bid to persuade him to disarm and leave the shrine, said they were waiting for a signed letter from the cleric before trying again.
"When we receive it, we will go back," said Sheikh Mohammed Mohammed Ali.
One person was killed and three wounded overnight, said a doctor at the shrine`s makeshift clinic. At least four more patients were brought in after daylight fighting.
Despite the simmering conflict in Najaf, a resumption of crude exports from southern Iraq helped calm world oil markets.
The benchmark Brent North Sea crude fell 14 cents to 43.40 dollars per barrel in London. New York`s main contract, light sweet crude oil for delivery in October, dropped 19 cents to 46.53 dollars per barrel in early deals.
As US military officials said it could take up to 10 years to crush the insurgency, nine people, including a Turk, were killed in a string of deadly roadside attacks, US military and police sources said.
And there was still no news of French reporters Georges Malbrunot and Christian Chesnot, who were last seen in Baghdad on Friday and are thought to have been kidnapped on their way to Najaf.
Italian reporter Enzo Baldoni has also been missing since Thursday. A body thought to be that of his driver was discovered near Najaf.
For his part, US journalist Micah Garen -- who was taken hostage a week ago in southern Iraq -- was released. The founder of Four Corners Media was in good health and understood to be back at work after a medical check up.