United States forces will continue to pull out of Iraq despite last night's twin bombing in Baghdad that left at least 68 people dead and 120 injured.

The coordinated blasts yesterday evening came after the US military announced that 2,000 soldiers in the Iraqi capital would not be replaced when they pull out over the next few weeks as part of a pre-scheduled cut in force-levels.

The total number of US troops is due to drop by more than 21,000 by the end of July, taking America’s combat power to the same level it was before 30,000 additional troops were sent to Iraq last year.

President Bush’s so-called surge was one of the pivotal factors behind a dramatic drop in violence across Baghdad and the surrounding provinces. But a recent spate of bombings underscores the fragility of the renewed security.

Colonel Bill Buckner, a military spokesman, blamed al-Qaeda in Iraq (AQI) for yesterday’s double bombing, which ripped through a busy shopping district in Karrada where hundreds of young people had been enjoying their regular Thursday evening out. Friday and Saturday are a weekend in Iraq.

“Although we have made great progress in defeating AQI, it still retains the ability to execute high visibility attacks against innocent Iraqi people in order to create the perception that the Iraqi Security Forces and coalition forces are failing, and that is not true,” Colonel Buckner said in an email.

Sarmad Ali, a journalist for The Times, was caught up in the carnage – the deadliest, single-location bombing in Baghdad since an attack near a mosque last June. He escaped with a relatively minor injury and was feeling fine today. Many others were not so lucky and scores of funerals were taking place.

A major clean up operation was also underway at the scene of the two blasts, where shop fronts had been shattered and blood had dried on the street.

Asked whether the ongoing violence would affect the military’s re-deployment timetable, Colonel Buckner said: "There is no intent to change our drawdown plans as a result of yesterday's attacks. We are on glide-path to redeploy our remaining surge brigade combat teams by July 31.”

Yesterday’s announcement of the upcoming departure of the 2nd Brigade Combat Team, 82nd Airborne Division, “further illustrates our confidence in the growing capability of the Iraqi security forces and Sons of Iraq in helping to provide a safe and secure environment for the Iraqi people”.

Sons of Iraq, also known as concerned local citizens, are a US-funded movement of more than 90,000 people, largely Sunni Arabs, who have turned against extremist groups such as al-Qaeda and sided with the US military in one of the most significant developments of the past year.

A 60 per cent reduction in violence across the country has fuelled expectations of further troop cuts before the end of the year.

All eyes will be on General David Petraeus, the top US commander in Iraq, and Ryan Crocker, the American Ambassador, next month when they present an update on the situation to Washington.

Commanders, wary of losing security gains, have indicated that it would be a good idea to assess the status quo after the current drawdown is completed in July before making a decision on the size and pace of further reductions.

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