An army captain has told Reuters that gunmen used machine guns and hand grenades in an attack on a military post near Dhuluiya, 70 km (45 miles) north of Baghdad.
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The operation to recover the unexploded bomb near the Houses of Parliament let to disruption in central London overnight.
Southern parts of England and Wales will see sunny skies after a frosty start.
A police spokesman said the incident in the Bourke Street Mall on Friday was not related to terrorism.