Taliban forces and fighters loyal to local leader Ahmad Massoud battled in Afghanistan's Panjshir Valley on Thursday, more than two weeks after the Islamist militia seized power, as Taliban leaders in the capital, Kabul, worked to form a government.

Panjshir is the last province resisting rule by the Taliban, who retook control of the country as U.S. and foreign troops withdrew after 20 years of conflict following the Sept. 11, 2001, attacks on the United States.

Each side said it had inflicted heavy casualties.