Clashes in the Iraqi capital, Baghdad's Sadr City district have left at least seven people dead, despite a deal aimed at ending the bloodshed.

Iraqi officials said Thursday the fighting between Iraqi security forces and Shi'ite militants loyal to radical cleric Moqtada al-Sadr broke out overnight and in the early morning.

Renewed Fighting in Iraq's Sadr City Kills at Least 7

Hospital officials say 19 people were wounded, including women and children.

Renewed Fighting in Iraq's Sadr City Kills at Least 7

Military officials said earlier this week that violence in Sadr City had eased following a cease-fire agreement announced Saturday with Sadr's representatives.

Renewed Fighting in Iraq's Sadr City Kills at Least 7

Also in Baghdad, the U.S. military says it killed two militants in separate fighting.

Meanwhile, house-to-house searches by Iraqi troops in the northern city of Mosul entered a second day -- part of a new crackdown against insurgents in what is considered al-Qaida's last major stronghold in Iraq.

Iraqi officials say more than 500 suspected militants have been arrested so far.

Iraqi Prime Minister Nouri al-Maliki is overseeing the new offensive in Mosul.

The U.S. military says it is giving support to Iraqi troops leading the operation.