Brother of Talib Saddam leans on a car in which his brother was killed in the Shiite enclave of Sadr City in Baghdad, 15 May 2008

Clashes in the Iraqi capital, Baghdad's Sadr City district have left at least seven people dead, despite a deal aimed at ending the bloodshed.

Iraqi officials said Thursday the fighting between Iraqi security forces and Shi'ite militants loyal to radical cleric Moqtada al-Sadr broke out overnight and in the early morning.

Hospital officials say 19 people were wounded, including women and children.

Military officials said earlier this week that violence in Sadr City had eased following a cease-fire agreement announced Saturday with Sadr's representatives.

Also in Baghdad, the U.S. military says it killed two militants in separate fighting.

Meanwhile, house-to-house searches by Iraqi troops in the northern city of Mosul entered a second day -- part of a new crackdown against insurgents in what is considered al-Qaida's last major stronghold in Iraq.

Iraqi officials say more than 500 suspected militants have been arrested so far.

Iraqi Prime Minister Nouri al-Maliki is overseeing the new offensive in Mosul.

The U.S. military says it is giving support to Iraqi troops leading the operation.

Some information for this report was provided by AP and Reuters.