A western diplomat says UN observers found 28 bodies during a tour of a camp of Iranian exiles stormed by Iraqi soldiers last week.

The diplomat says 25 of the bodies had gunshot wounds and at least three appeared to have been crushed by vehicles. Observers visited Camp Ashraf on Wednesday to assess damage from the raid against the People's Mujahedeen Organisation of Iran. The diplomat spoke on condition of anonymity because he was not authorised to release the details.

Iran says the People's Mujahedeen are terrorists. The exiles were allies of Saddam Hussein against Iran. Iraq's post-Saddam leaders have close ties with Iran and have tried to uproot the camp. An Iraqi government spokesman did not comment.