A truck bomb exploded near a Baghdad police station, killing nine people, as the Philippines became the fifth country to withdraw its troops from the US-led forces in Iraq earlier than schedule.
Manila pulled out its troops -- despite sharp rebukes from Iraq and the United States -- to save the life of a 46-year-old Filipino hostage as the release was announced of an Egyptian truck driver taken hostage earlier this month.
It remained to be seen whether the Philippines' gamble will pay off as there was no news on the fate of the Filipino father of eight, Angelo de la Cruz.
Mohammed Mamduh Kotb, counsellor at Egypt's interests section in Baghdad, said Sayed Mohammed Sayed al-Garbawi was safe and well, although he refused to say whether a ransom had been paid to secure the trucker's freedom.
"He is with me and we are heading to the embassy now," Kotb told AFP.
The hostage drama unfolded as a senior defence ministry official was gunned down near his home in the latest high-profile murder.
Adding to the mayhem, a British airman died and two were wounded when their helicopter crashed in an apparent accident in the south of the country.
As the violence spiralled three weeks after Iraq regained its sovereignty, Prime Minister Iyad Allawi flew to Jordan at the start of a two-week Middle East tour, his first foreign trip since taking office.
The Egyptian truck driver's employer Saudi al-Jari transport company, which is licensed to ferry oil shipments to Iraq through the Arar border crossing, said Friday it would end all activities in Iraq as demanded by the kidnappers.
Initially the armed group that held Garbawi had demanded a one million dollar ransom but his employer made a counter-offer of 15,000 dollars.
Manila also caved in to blackmail to save De la Cruz, a driver like Garbawi but who was threatened with beheading if his country failed to withdraw its 51 soldiers and police out of Iraq one month earlier than scheduled.
The Philippines is the fifth country to withdraw its troops from the US-led forces in Iraq ahead of schedule, following Spain, the Dominican Republic, Honduras and Nicaragua.
In addition, there was no fresh information on a Bulgarian truck driver also caught up in a hostage crisis that has engulfed Iraq since April as armed group opposed to the new government and hoping to derail the US-led reconstruction efforts pick off dozens of foreigners to use as political pawns.
Some have been killed some released and others are still missing.
Attacks continued to target other elements of the new administration, namely police, civil servants and politicians, who have borne the brunt of the 15-month insurgency that burgeoned during the US-led occupation.
Meanwhile, the British military said one of its helicopters crashed in what was thought to be an accident in Basra, 500 kilometres (300 miles) south of Basra, killing one airman and injuring two others.
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US marine soldiers in Mahmudiyah, some 60 kms south of Baghdad. (AFP)