AMERICAN cruise missiles have hit buildings in the centre of Baghdad, as Allied troops in the north of Kuwait move closer to Iraq.

Loud explosions have been heard in Baghdad, with a building used by the Republican Guard hit, smoke is now filling the night sky as anti-aircraft gun tracer fire can be seen heading into the clouds.

To the south of Iraq artillery fire has been heard as thousands of Allied troops head towards the Kuwait/Iraq border region.

Reports from southern Iraq are claiming that there are oil fires to the south and west of Basra, close to where Allied troops are stationed.

Earlier today Iraqi forces fired missiles into Kuwait hours after the United States attacked targets in and around Baghdad.

No one was injured in the attacks on U.S. positions, which were either intercepted or fell harmlessly in the desert.

The American military said at least one of the rockets was intercepted by Patriot missiles.

U.S. intelligence over recent days had picked up signs that the Iraqis had moved artillery and missiles toward the border with Kuwait, putting U.S. positions within range.

U.S. aircraft were ordered to attack the positions on Wednesday night, though officers said it was unclear whether all of them were hit.

An Iraqi missile struck outside a U.S. army camp, there was no warning of the attack, and it sent Marines scrambling to don their gas masks and race into sandbagged air raid bunkers.

The two-foot deep missile crater was surrounded by charred pieces of metal and downed power lines from a nearby pole.

A specialised crater survey team and three Kuwaiti police vehicles descended on the scene. Military nuclear-biological-chemical experts determined that the weapon contained no chemical weapons.

Two hours after the "all clear" sounded, the air raid siren wailed again. Marines returned to their bunkers, but this time there was no missile.

The Associated Press reported that the second attack was a Scud missile, which was intercepted by a U.S. Patriot anti-missile system.

Marine officers said they suspected the missile was fired from the Iraqi port of Umm Qasr.

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