This paper presents an effective algorithm for absolute phase (not simply modulo-2-pi) estimation from incomplete, noisy and modulo-2pi observations in interferometric aperture radar and sonar (InSAR/InSAS). The adopted framework is also representative of other applications such as optical interferometry, magnetic resonance imaging and diffraction tomography. The Bayesian viewpoint is adopted; the observation density is 2-pi-periodic and accounts for the interferometric pair decorrelation and system noise; the a priori probability of the absolute phase is modeled by a compound Gauss-Markov random field (CGMRF) tailored to piecewise smooth absolute phase images. We propose an iterative scheme for the computation of the maximum a posteriori probability (MAP) absolute phase estimate. Each iteration embodies a discrete optimization step (Z-step), implemented by network programming techniques and an iterative conditional modes (ICM) step (pi-step). Accordingly, the algorithm is termed ZpiM, where the letter M stands for maximization. An important contribution of the paper is the simultaneous implementation of phase unwrapping (inference of the 2pi-multiples) and smoothing (denoising of the observations). This improves considerably the accuracy of the absolute phase estimates compared to methods in which the data is low-pass filtered prior to unwrapping. A set of experimental results, comparing the proposed algorithm with alternative methods, illustrates the effectiveness of our approach.