Iraqi forces called in U.S. airstrikes to support the offensive against hundreds of well-organized gunmen.
BizVantage – The NOW newsletters, realtime with your content - for business, investment or technology.
Try the free, no-hassle 6 month trial!
The U.S. military says two American soldiers were killed when their attack helicopter crashed during the battle.
Iraqi authorities said Monday, at least three Iraqi security personnel were killed in the fighting and about 30 were wounded. They say more than 10 gunmen were captured, while an unknown number escaped.
In other violence, Iraqi police say a series of bombings in Baghdad Monday, killed at least five people.
A bomb planted on a minibus killed four passengers and wounded five others on Palestine Street, while a car bomb killed one person in the al-Baladiyat district of eastern Baghdad.
The identity of the insurgents is unclear. Iraqi sources say fighters were planning to attack Shi'ite clerics taking part in the Ashura observance in the holy city of Karbala this week.
Thousands of Iraqi soldiers and police are deploying around Karbala to provide security for Shi'ite pilgrims during Ashura.
Ashura marks the seventh-century killing of the Shi'ite Imam Hussein, who was the grandson of the Prophet Muhammad. Shi'ites believe Hussein was the prophet's heir. Hussein's death solidified Islam's split into rival Sunni and Shi'ite sects.
Some information for this report was provided by AFP, AP and Reuters.