The top U.S. general in Iraq, Gen. George Casey, left, talks to U.S. soldiers with Army Maj. Gen. James Thurman, commander of U.S. forces in Baghdad, center, during a visit to a northern Baghdad neighborhood on Thursday to talk with local officials about an operation currently under way to crack down on violence in the capital.

BAGHDAD, Iraq — The conflict in Iraq is changing from a fight against U.S.-led coalition forces to an internal struggle for political and economic power, the top U.S. general in Iraq told The Associated Press in an interview Thursday.

Gen. George Casey acknowledged the security situation has become more difficult in the past few months, and said Iraqi leaders must find common ground on key issues if progress is to be made.

"We're starting to see this conflict here transition from an insurgency against us to a struggle for the division of political and economic power among the Iraqis," Casey said.

The general made the comments as he finished a visit to a northern Baghdad neighborhood to talk with local officials about an operation aimed at curbing violence in the capital.

Maj. Gen. Bashar Mahmood Ayoub, commander of the 9th Iraqi army, said the situation has deteriorated in recent months.

"These days, the violence is worse and the politicians are not supporting us," Ayoub told the AP. He said it was up to political leaders to resolve the security situation, adding that the army could do nothing further for now.

Casey acknowledged the difficulties.

"I think the security situation is more complex and more difficult than it was in December '05," when Iraq held general elections.

The February bombing of a Shiite shrine in Samarra, 60 miles north of Baghdad, led to a surge of violence.

"It's why I think it probably is somewhat more complex than it was back in December," Casey said. "But it's peaked and it's come down again."

The general flew from the fortified Green Zone in the center of the city to visit the Shaab and Azamiyah neighborhoods, where Iraqi and U.S. forces have been conducting searches as part of Operation Together Forward.

Reducing violence in the capital is crucial to any possible success in Iraq, Casey said.

The operation is designed to clear the capital neighborhood by neighborhood, with security forces cordoning off areas and searching all buildings.

Casey said that for progress to be made, unity among Iraqi leaders was crucial.

"I think the greatest challenge at the moment is to get the Iraqi leaders to come together and resolve the four or five key issues that are dividing the country right now."