Hillary Clinton pins hopes on meeting of Iraq factions

A rare meeting of Iraq's main political parties today could signal a breakthrough in a deadlock that has lasted since the election in March.

Secretary of State Hillary Clinton would not confirm reports that a deal had been reached but said the US wanted Iraq's different factions to form an inclusive government.

The meeting at a conference hall in the northern city of Irbil follows eight months of intense negotiations on forming a coalition government. Among the leaders attending were prime minister Nouri al-Maliki and the man who would like to take his job, Ayad Allawi.

Mr Allawi heads the Sunni-backed Iraqiya coalition that won 91 seats in the parliament to Mr Maliki's 89. Mr Maliki is supported by the main Shia parties. Neither side won a majority in the 325-seat parliament.

Sunni delegate Abdul-Karim al-Samarraie said: "We have almost reached common ground on establishing a partnership."

The leader of the Kurdish negotiating team, Najim al-Din Karim, called the meeting an "important step," but warned there were still sticking points in the negotiations. Hours earlier seven Shia pilgrims were killed in a car bomb blast in the holy city of Karbala.

Last week, about a dozen co-ordinated bombs targeted Shia districts across Baghdad, killing more than 60 people and wounding hundreds.

Analysts said the increase in violence could be a last-ditch attempt by al Qaeda to exploit the political vacuum before a government is formed.