Iraq today claimed "many, many" civilians were killed after coalition bombs or missiles hit a market in Baghdad. Officials said that at least 12 people had died although local people claimed "dozens and dozens" were dead.

The authorities said two cruise missiles struck a heavily-populated area in the north of the city, Al-Shaab.

Around 30 other people were said to be injured and there were reports from television journalists of badly-burned bodies lying close to damaged residential buildings.

The incident would appear to be the first major case of so-called "collateral damage" involving substantial civilian casualties, which Allied chiefs have been trying to avoid.

The Arabic satellite television channel Al Jazeera showed several charred cars at the scene. Hundreds of people stood in front of what appeared to be a bombed-out building, some with their firsts in the air and shouting "There is no God but God."

The Iraqi authorities are expected to take western journalists to the scene later today.

In the 1991 Gulf War, an RAF Tornado hit a market in the city with a stray bomb, killing a reported 130 people and wounding 78. The RAF apologised and called the incident a "one-off".

But it was one in a series of "collateral damage" incidents that led to charity the Red Crescent to estimate that as many as 7,000 civilians had been killed in allied bombing raids