Islamic State claims deadly car bombing in Iraq

The Islamic State militant group has claimed responsibility for a car bomb that exploded in a busy market in an Iraqi town, that killed at least 100 people who were celebrating the end of the Muslim holy month of Ramadan.

IS, which controls swathes of Iraq and Syria,  said that the car was carrying around three tonnes of explosives.

Several people were also injured by the blast in Khan Bani Saad, approximately 30km northeast of the Iraqi capital of Baghdad.

Crowds reportedly went on a rampage after the explosion, smashing the windows of cars parked in the street in grief and anger.

"Some people were using vegetables boxes to collect body parts of kids' bodies," police major Ahmed al-Tamimi told the Reuters news agency, while describing the damage to the market as "devastating".

The Diyala provincial government declared three days' mourning and cancelled all Eid al-Fitr festivities to pre-empt any further attacks.

Islamic militants are battling Iraqi militant forces in the north and west of the country. It captured parts of the Diyala governorate last year, and although it was driven out, it has maintained a presence there.