Iraq was last night poised on the edge of a full-scale religious uprising as the assassination of Hamas leader Abdel-Aziz al-Rantissi fed oxygen to the tinderbox siege of the holy cities of Najaf and Falujah.

Hundreds of foreign fighters, including Palestinians, have already poured into Iraq, the new front line in the battle against the ?infidels?, making the peaceful resolution of the siege of the Shiite holy city of Najaf a near impossibility.

The 2500 US troops massed on the outskirts of Najaf to kill or arrest al-Sadr and his followers have been warned that to cross the ??red lines?? into the holy city would spell outright war with Iraqi counter-insurgents that would quickly escalate into a religious uprising against the US occupiers.

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The prime Minister?s unqualified backing for the unilateral deal on Gaza and the West Bank struck between George Bush and the Israeli prime minister Ariel Sharon, last night looked to be a political misjudgement of the highest order following the killing of Abdel-Aziz al-Rantissi last night.