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The US military has admitted that the three people killed last month by US soldiers were "law abiding" Iraqi civilians and not militants.

The military says an investigation showed that the three Iraqi people killed by US soldiers in June were civilians as they were on their way to work at the Baghdad airport.

On June 25, the US military said in a statement that the three "criminals" opened fire on two US vehicles from their car, claiming the soldiers shot back in self-defense.

The military however in a Sunday statement stated that "the driver and passengers were law-abiding citizens of Iraq", adding no weapons were found in their car.