Fighting between United States forces and the Shia militia of the cleric Muqtada Sadr broke out again in the holy city of Najaf, threatening to kill a ceasefire deal made last week. The violence came as talks to name a new interim government were deadlocked over the question of who will become president. Iraqis involved in the talks were sayinga dispute with the US over the presidency could delay the planned handover of sovereignty on 30 June.
http://news.independent.co.uk/world/middle_east/story.jsp?story=526651

The disagreement comes after the unexpected appointment of Iyad Allawi to the more powerful job of Prime Minister. The US-appointed Governing Council wants to name its leader, Ghazi Yawar, to the largely ceremonial role of president.

But the US is leaning on them to choose Adnan Pachachi, 81, a former diplomat. Both are more popular choices than Mr Allawi, who has close links to the CIA and MI6. Mr Pachachi and Mr Yawar, a tribal leader, are widely respected by Iraqis. Both are Sunnis, to balance the fact that Mr Allawi comes from the majority Shia population.

The difference is that Mr Yawar has called for US forces to leave Iraq. Although he eschews the use of violence, he has called on Iraqis to use peaceful means to resist the occupation.

The governing council, scheduled to be dissolved on 30 June, appeared to have staged an inside coup, naming one of its own members as premier. But there are suspicions there may have been US involvement in the move. Mr Allawi is likely to be a more malleable choice than the technocrats Mr Brahimi was known to favour.

The renewed fighting in Najaf yesterday may be more destabilising. It came after Sadr had agreed to withdraw his Army of Mehdi from the holy city if US forces did the same - a deal which was supposed to end weeks of fighting in which Iraq's most sacred Shia shrine had been damaged.