By Michael Georgy
NAJAF, Iraq (Reuters) - U.S. tanks advanced to within 800 yards of the Imam Ali mosque in the Iraqi city of Najaf on Sunday after talks on surrendering control of the shrine at the center of an 18-day siege ran into trouble.
Hours earlier, a U.S. military AC-130 gunship unleashed rapid cannon and howitzer fire on positions held by rebels loyal to firebrand cleric Moqtada al-Sadr, who remain in control of the gold-domed shrine in defiance of the Iraqi government.
North of Baghdad, a suicide car bomb blew up near a convoy carrying Iraqi officials near the town of Baquba, killing two people and wounding eight, a police officer said.
The U.S. operation in Najaf came as negotiators tried to end a Shi'ite Muslim rebellion led by Sadr's Mehdi fighters that has helped push world oil prices to record highs.
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http://www.reuters.com/newsArticle.jhtml?type=worldNews&storyID=6036821