British troops have killed seven gunmen and demolished an Iraqi police station in the southern city of Basra to stop rogue officers from using the site to commit crimes.

British forces stormed the Jameat police station early Monday after receiving intelligence that Iraqi officers were planning to execute detainees.

British military officials say the operation was aimed at disbanding a unit at the station involved in murders, kidnappings and other crimes.

In Baghdad, Iraqi police say a car bomb exploded in a mainly Shi'ite neighborhood, killing at least 10 people.

Meanwhile, U.S. and Iraqi officials say American forces in Baghdad detained at least four Iranians last week suspected of inciting attacks against Iraqi troops.

Officials say Iraqi President Jalal Talabani had invited the Iranians to visit the capital, and he was unhappy that U.S. forces had detained them.

Officials say two Iranian diplomats seized by U.S. forces were later turned over to Iraqi authorities and released.

The New York Times reports that at least two Iranian military officials remain in U.S. custody.

Washington has accused Iranian agents of stirring up sectarian violence in Iraq by arming and training Shi'ite militias. Tehran says it only has political and religious links with Iraqi Shi'ites.

In another development, Iraqi police say a suicide bomber killed three policemen Monday in the town of Ramadi in the western province of Anbar.

Some information for this report was provided by AFP, AP and Reuters.