DHAKA: Sunni militants have seized the northern Iraqi buffer city of Tal Afar, officials and residents say.

Militants led by ISIS, the Islamic State in Iraq and the Levant, captured key cities including Mosul and Tikrit last week, but some towns were retaken.

Fighting in Tal Afar began on Sunday, with mortar shelling of some districts as militants tried to enter the city, reports the BBC.

The Iraqi military setback came as the US said it was considering direct talks with Iran on Iraq.

US president Barack Obama is weighing up options on action to take in Iraq.

The USS George HW Bush aircraft carrier is already being deployed to the Gulf, accompanied by two more warships. But Washington says no US troops will be deployed on the ground.

Iranian president Hassan Rouhani has said he will consider co-operation if the US takes action in Iraq.

BDST: 1736 HRS, JUNE 16, 2014