BAGHDAD, 1 November 2004 — Interim Prime Minister Iyad Allawi warned time was running out for peace in Fallujah as the US military continued to target suspected insurgents yesterday.

Allawi said his government continued to seek “a peaceful solution” to the insurgency problems in Fallujah and nearby Ramadi, but he warned patience “was running thin”.

Iraqi security forces have arrested 167 suspected insurgents in recent days, Allawi said. Syrians, Saudis and Sudanese were among those arrested, he told a televised news conference.

Meanwhile, the death toll of US Marines killed by a car bomb near Fallujah on Saturday rose to nine. Allawi’s warning occurred as US forces prepared for a showdown with thousands of militants holed up in Fallujah — the city that has become the focal point of armed resistance to the Americans and their Iraqi allies.

In Fallujah, insurgents fired mortar rounds and rockets at US Marines, who responded with artillery. US aircraft also struck suspected rebel positions, Marine officials said.

Clashes were also reported between US forces and insurgents in Ramadi, west of Fallujah, killing seven Iraqis and injuring 11, hospital officials said.

As night fell in the Iraqi capital, the rumble of powerful explosions could be heard coming from the western edge of the city but the cause of the blasts could not be determined.

US officials say Allawi will personally issue the final order to launch any all-out assault on Fallujah and other Sunni insurgent strongholds north and west of the capital.

His remarks appeared aimed at preparing the Iraqi public for an onslaught likely to unleash strong passions, especially among the country’s Sunni minority. Sunni clerics have threatened to call for a nationwide civil disobedience campaign and to boycott national elections in January if the Americans attack Fallujah, 65 kilometers west of Baghdad.

However, the city has become the nexus of an insurgent network that has carried out numerous car bombings and beheadings of foreign hostages since the Bush administration ordered Marines to halt an offensive against Fallujah in April.

Fallujah is believed to be the headquarters of Jordanian militant Abu Mussab Zarqawi, who announced his allegiance to Al-Qaeda this month. Zarqawi’s group is believed responsible for numerous beheadings of foreign hostages, including Japanese backpacker Shosei Koda, whose body was found Saturday night in Baghdad wrapped in an American flag.

“The terrorists and insurgents continue to use Fallujah and the Fallujah people as a shield for their murderous acts,” Allawi said. “Some of the most incredible crimes have been committed in Fallujah and out of Fallujah by these terrorists.”

He said he “cannot stand back and allow such attacks to continue.”

Allawi said he was willing to pursue contacts with tribal leaders and others to reach a settlement in Fallujah, which must include handing over foreign fighters and allow Iraqi security forces to take control of the city.

“We have now entered the final phase of attempts to solve Fallujah without a major military confrontation. I hope we can achieve this, but if we cannot, I have no choice but to secure a military solution,” he added.