DHAKA: A car bomb has killed at least 80 people at a busy market in an Iraqi town, officials have said.

The attack happened in the predominantly Shia town of Khan Bani Saad, north of the capital Baghdad, reports BBC.

Children were among those dead in the explosion, which came as people celebrated the end of the Muslim holy month of Ramadan.

The Islamic State (IS) group, which control swathes of the country, has said it was behind the attack.

A statement from the group said one of their members drove three tonnes of explosives into a crowd.

Police major Ahmed al-Tamimi, told Reuters the damage was "devastating".

"Some people were using vegetable boxes to collect body parts of kids' bodies," he said.

Bodies are still being pulled from the wreckage, witnesses say.

The Diyala provincial authorities have declared three days of mourning and cancelled Eid al-Fitr festivities.

IS militants are battling government forces in the north and west of the country.

The group captured parts of Diyala last year, and although it was later driven out it still has a presence there.

BDST: 1510 HRS, JULY 18, 2015
RS