Pakistani troops were rushed to Hangu
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Officials in the north-west Pakistani town of Hangu say calm has been restored after two days of violent clashes that left 40 people dead.
On Thursday a suspected suicide bomber attacked a Shia Muslim procession in Hangu which led to riots.
A senior police official, Abdul Majeed, told the BBC that peace was restored after local elders persuaded both sides to stand down.
The violence took place on Ashura, the holiest day in the Shia calendar.
The blast was followed by gun and rocket fire between armed Sunni and Shia groups. About 70% of the town's main market was burned down in the violence.
Attack claim
It is still not clear who carried out the suicide bombing.
On Saturday, a man called up a local Pakistani private television channel to say that a banned Sunni Muslim group, the Lashkar-e-Jhangvi, was behind the attack.
But the claim has not yet been independently verified.
A judicial inquiry into the attack has been ordered, officials say.
Ashura marks the death of the Prophet Muhammad's grandson Imam Hussein.