Iraq's Maliki says he'll fight militia to the end

By Aref Mohammed

BASRA, Iraq (Reuters) - Iraq's U.S.-backed Prime Minister Nuri al-Maliki vowed on Thursday that security forces would battle Shi'ite militia in Basra "to the end", despite huge demonstrations to demand his resignation.

Mehdi Army fighters loyal to cleric Moqtada al-Sadr remained in control of much of Basra, Iraq's second biggest city and main oil hub, defying a three-day government offensive that has led to violence spreading across the south and Baghdad.

Authorities imposed a three-day curfew in the capital to contain the clashes.

Saboteurs blew up one of Iraq's two main oil export pipelines from Basra, cutting at least a third of the exports from the southern oilfields, a Southern Oil Company official said. U.S. oil prices briefly rose more than $1 a barrel.

Maliki, who has traveled to Basra to oversee the crackdown, told tribal leaders it was sending "a message to all gangs that the state is in charge of the country".

"We entered this battle with determination and we will continue to the end. No retreat. No talks. No negotiations."

Sadr has called for talks. Late on Thursday he issued a statement saying: "We ask everyone to adopt the political resolution and peaceful protest. Do not shed Iraqi blood."

More than 130 people have been killed and hundreds wounded since the government began its offensive on Tuesday, exposing deep divisions between powerful factions within Iraq's majority Shi'ite community.