The leader of Iraq's largest Shiite party, Abdel Aziz al-Hakim, died on Wednesday in a Tehran hospital after a battle with lung cancer, five months before key parliamentary elections in Iraq, AFP reported.
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Hakim -- a cleric who had fought the Iraqi regime of executed dictator Saddam Hussein -- was praised by both political leaders in both Iraq and Iran.
"He died a few minutes ago after battling cancer for 28 months," his son Mohsen Hakim told AFP. Iranian state television quoted a doctor as saying he died at 1010 GMT.
"He was a leader and had special characteristics which made him a favourite of the people," added son Ammar Hakim, who was with his brother at their father's bedside when he died.
Hakim, who was 60, is due to be buried in the Iraqi Shiite shrine city of Najaf.
Iranian President Mahmoud Ahmadinejad called Hakim's death "a great loss for the Iraqi people," and paid particular tribute to the family, describing them as "revolutionaries," the official IRNA news agency reported.
Iraq's Shiite Prime Minister Nuri al-Maliki also paid tribute to Hakim, saying that his death came at a critical stage for the country.
The US ambassador in Iraq Christopher Hill and top commander General Ray Odierno said in a joint statement that Hakim "demonstrated courage and fortitude, contributing to the building of a new Iraq."
Iran's former president Akbar Hashemi Rafsanjani expressed "sadness" and said: "He stood firm in the path of preserving Iraq's independence and integrity," IRNA reported.
In 1982 Hakim helped to establish an opposition movement in exile in Iran to battle Saddam's Sunni-dominated regime, and returned to Iraq after the US-led invasion of 2003.
His Supreme Iraqi Islamic Council (SIIC) swept Shiite areas in the first provincial elections after the invasion, but in new elections this January the party suffered major losses to Maliki's rival list.
"We have known Hakim for his knowledge, patience and struggle against the regime of dictatorship" of Saddam, Maliki said in a statement.