Overnight the US pounded the holy city of Najaf in the heaviest bombardment in the past two weeks. But the standoff continues. Yesterday the unelected Iraqi Prime Minister Iyad Allawi issued a final warning to the Shiite cleric Moqtada al Sadr to leave the holy Imam Ali and disarm his militia. Backers of Sadr are sending mixed messages from the holy shrine where they are based. Some reports indicate that Sadr is refusing to stop fighting, others indicate he is prepared to hand over control of the shrine to other Shiite religious leaders. Yesterday backers of Sadr attacked the Najaf police stations with mortar rounds killing 7 and injuring 35. In Baghdad, mortar rounds were fired at the former Republican Palace which now houses most of the U.S. embassy staff. Fighting also erupted in Sadr City leaving at least 5 Iraqis dead. And the U.S. bombed the Sunni city of Falluja killing at least two people.