The Saudi security forces have rescued seven US hostages in the eastern Saudi oil city of al-Khobar, the Saudi Arabian ambassador to the United States told US media late Saturday.

Prince Bandar bin Sultan, the ambassador, told Fox television that seven US hostages have been rescued.

Gunfire were heard after the Saudi forces launched an operation earlier to end the hostage drama in the compound where the gunmen were holding the captives while residents were evacuated from the facility.

Earlier reports said militants assaulted an oil company and housing compounds in Khobar, killing at least five foreigners and one Saudi and taking an unspecified number of people hostage.

A statement purportedly from Osama bin Laden's al-Qaida network claimed responsibility for the attack.

Saudi Crown Prince Abdullah bin Abdul Aziz late Saturday confirmed that about 10 Saudis and foreigners were killed in the shooting spree in the eastern oil city of Al-Khobar in the morning.

At least 10 foreigners, Saudi civilians and security forces were killed when suspected Islamic terrorists attacked a residential compound early Saturday morning.

Source: Xinhua