AL-MADAIN, Iraq: Al-Hawzah Al-Ilmiyah in the holy city of Najaf has condemned hostage-taking in the central Iraqi city of Al-Madain as Iraqi and US troops launched an operation in the besieged city.

An interior ministry official said Iraqi troops entered Madain, where terrorists have rounded up over 150 hostages including children and women and threatened to kill them unless all Shias leave the city.

Two army battalions entered Madain and the neighboring communities of Hafriyah and Al-Wihda at 5:00 am (0100 GMT) on the hunt for the extremists who overpowered the city Friday night and quickly captured several residents, the official said.

"They have cordoned off the area and started search operations."

Iraqi army Special Forces had surrounded Madain since Saturday.

"The Iraqi forces ... will restore law and order to the city," National Security Advisor Muwaffaq Ar-Rubaie told AFP as the crisis hurtled into its third day.

Iraqi police sources said security forces are conducting a door-to-door search for the hostages.

On Saturday afternoon, the terrorists blew up the building housing Husseiniyah Ar-Rasul Al-Adham in Al-Madain, said a source at the interior ministry, adding that it was empty at the time.

A major raid on a terrorists’ base in Madain/Salman Pak by Iraqi and US forces on March 28 netted 90 suspects.

Haitham Husseini, a spokesman for the Supreme Council of Islamic Revolution (Sciri) said, "There were about 100 masked men, riding in cars, roaming the city. They took hostages from the Shia youth and old men."

"The families contacted us yesterday and they asked for our help. There is a fear now among the women and children."