DUBAI, Jan 17 (Reuters) - A leading Iraqi Sunni militant group called on Sunnis on Wednesday to wage a holy war against Shi'ite Muslims in Baghdad and throughout Iraq.

"Come to jihad...those (Shi'ites) do not respond to condemnations or threats, only fire and steel bring good in dealing with them," said a statement attributed to the head of of the militant group Ansar al-Sunna, identified as Abu Abdullah al-Hasan bin Mahmoud.

"Do not give them the chance to decide your fate. Kill them before they kill you and (fight) for the victory of Islam, the weak...not in Baghdad alone but in all of Iraq."

In the statement posted on the Internet, bin Mahmoud accused Shi'ites of torturing Sunnis and seeking to end their influence in Baghdad.

"When you hear the true stories about the rejectionists' (Shi'ites) torturing (Sunni) Muslims you might think that they are fictitious, judging by how grisly they are," he said.

The authenticity of the statement, posted on a Web site used by Sunni militant groups, could not be verified.

The call was issued on one of the bloodiest days in weeks, with a car bomb exploding in a crowded market in a Shi'ite area of Baghdad.

Communal bloodshed has raised fears of civil war and was a major reason for U.S. President George W. Bush's decision to review his Iraq strategy. The United Nations said on Tuesday more than 34,000 Iraqi civilians were killed in violence last year.

In December, the self-styled Islamic state in Iraq -- a militant group linked to al Qaeda -- urged Iraq's Sunni Muslims in a recording posted on the Web to launch a war on the country's Shi'ites.

Sunni militant groups including al Qaeda announced in October the creation of what they described as an Islamic state in Iraq.

Bin Mahmoud ordered fighters to organise their tactics and to plan their attacks carefully:

"Organise yourself in groups of four, each of which should cleanse their area from every spy, agent, traitor who stalks the mujahideen and all employees of the interior and defence ministries. Most of those are hateful rejectionists."

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