The soldiers discovered rocket propelled grenades
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British troops have seized "a significant arsenal" of ammunition from insurgents in Basra.
Members of the Staffordshire Regiment raided several properties in the Al Jameat area of the southern Iraq city on Sunday night.
They seized weapons including rocket propelled grenades, rocket launchers and roadside bomb components.
The operation was aimed at militias suspected of launching an attack on coalition forces in the city.
Soldiers came under fire from insurgents during the operation, but none were injured.
A mortar sighting system and mortar barrels were also found during the operation.
Mjr David Gell, the UK military spokesman in southern Iraq, said: "This is an important find by Multi National Forces and one which once again proves our ability to respond swiftly and effectively to attacks carried out against us.
Rocket launchers were among the items seized
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"This was an operation based on information which had been gathered and, like the previous raids over the weekend, the information proved accurate."
Cpl David Lovell, from Stafford, who is a member 1st Battalion The Staffordshire Regiment, said: "We were all brought together to put our heads together to come up with a plan and we executed the plan pretty much as it stood."
Cpl Sean McLeod, of Cannock, Staffordshire, said: "To find what we found was a huge relief because, instead of being attacked with it, and the morale becoming low with the lads, now that we've made this big find everybody is cheering and really happy."
Warrant Officer 2 Simon Jones, from Sutton Coldfield, Birmingham, said: "We've definitely saved lives no doubt about that. The kit was there, wired up and ready to go."