The U.S. military in Baghdad said Monday armed forces will continue to hunt down those responsible for attacks against coalition forces. An overnight bomb attack in a town northeast of Baghdad killed one American soldier and wounded two others.

A U.S. military spokesman said that attacks were continuing at the same rate throughout the country following a number of encounters Sunday.

Details are still sketchy, but reports say Sunday's attack occurred outside a police station in Baquba, about 70 kilometers north of the capital.

One U.S. army officer on the scene was quoted by the Associated Press as saying the explosive device used in the attack appeared to be a homemade bomb.

Another reported attack occurred in Baghdad Sunday night as two grenades were thrown near the British embassy damaging two trucks. Small arms fire was also heard in the southern part of the city.

Meanwhile, a tense calm is reported Monday in the southern Iraqi city of Basra, following two days of rioting over shortages of electric power and fuel. The unrest claimed two lives.

An Iraqi and a security guard from Nepal were killed in separate incidents Sunday during the violence as British troops struggled to bring rioting under control. Several Iraqis and British soldiers were injured in unrest Saturday.

The U.S. Army also said Monday they were launching a new operation in remote villages north of Baghdad in the hunt for guerillas loyal to former president Saddam Hussein. The Army said it would use tanks and helicopters to find those who alluded capture following hundreds of raids in Saddam's former hometown of Tikrit.