Two missiles were fired at a house in Khushali Torikhel area near Mir Ali town at around midnight, TV channels reported, killing nine people, most of them Arab militants.

The missile launch from an unmanned drone, believed to be operated by US forces in Afghanistan, came as tribesmen reportedly fired at three drones, which were circling the area close to the Afghanistan border.

Some of the Arab militants were initially injured, but later succumbed to injuries.

Pakistani security and Intelligence officials used the term 'Arab and foreign' for militants from Osama bin Laden's al-Qaeda network, which is suspected to have safe havens in the tribal belts.

In a separate incident, two persons were killed in a bomb blast in a market in the Khyber Agency. No group claimed responsibility for the attack.

The blast created tension in the area. The local political administration cordoned off the site of the blast and began an investigation.

This was probably the sixth case of unmanned drones targeting houses in the tribal areas, particularly in north and south Waziristan.

The stepped up attacks by drones and a recent cross-border raid carried out by suspected special forces had created tension between Washington and Islamabad.

Today's missile attack came even as the US assured Pakistan that it supported its territorial integrity. The assurance was given in the talks held in Washington between top officials of Pakistan government and Pentagon and state department.

Meanwhile, the Pakistan government has stepped up security across the country for the Eid-ul-Fitr festival, which marks the end of the Islamic holy month of Ramzan.

Thousands of police, paramilitary and army personnel have been deployed in the federal capital and other cities to prevent terrorist attacks.

Top leaders stayed away from public congregations while offering Eid prayers. Prime Minister Yousuf Raza Gilani and members of his cabinet offered prayers at a mosque within his high-security official residence in Islamabad.

President Asif Ali Zardari joined officials in offering prayers at a mosque within the heavily guarded presidential palace in the heart of Islamabad. Large contingents of policemen were seen at all Eidgahs and mosques across the federal capital.