Seven Iraqis have been killed and 90 others wounded in clashes between US occupation forces and al-Mahdi Army fighters in al-Sadr City in Baghdad, Aljazeera television has reported. Also on Saturday, US warplanes and tanks bombarded Fallujah while US forces exchanged gunfire with fighters on the city's eastern outskirts. An Iraqi was killed and 13 wounded in the fighting. The attacks struck the city's eastern al-Askari neighborhood as well as the industrial area at the eastern entrance of Fallujah, in addition to the Niaamyya district. At least four homes were destroyed and people were seen being rushed to hospital. "The attack set a textile factory in the industrial quarter on fire while plumes of smoke were seen rising from some of the targeted areas," sources told Aljazeera. **'Sporadic fire'*** Lt Col Thomas V Johnson, a Marine spokesman, said US troops based on the edge of Fallujah had been attacked. "One of our positions near Fallujah has been taking sporadic fire," Johnson said. "Marines countered with tanks and artillery." Witnesses said the air raids began at 19:00 pm (16:00 GMT) and clashes between the two sides continued for several hours. US forces have repeatedly carried out air strikes in Fallujah, west of Baghdad, ever since the Marines ended a three-week siege of the city in April. **PHOTO CAPTION*** Smoke bellows across the sky, allegedly coming from a US army vehicle that was hit by al-Sadr's supporters in a narrow alley, in Sadr-city in Baghdad, Iraq, Saturday Aug. 28, 2004. (AP)