Car bomb in Baghdad's Sadr City

  • 11/05/2016
The SUV packed with explosives went off near a beauty salon in a bustling market (Reuters)
The SUV packed with explosives went off near a beauty salon in a bustling market (Reuters)

A car bomb claimed by Islamic State in a Shi'ite Muslim district of Baghdad has killed at least 64 people and wounded more than 60 others.

The SUV packed with explosives went off near a beauty salon in a bustling market at rush hour in Sadr City on Wednesday (local time).

Most of the victims were women, Iraqi police and hospital sources said.

Amaq news agency, which supports Islamic State, said a suicide bomber had targeted Shi'ite militia fighters.

The ultra-hardline Sunni jihadist group, which considers Shi'ites apostates, claimed a twin suicide bombing in Sadr City in February that killed 70 people.

The fight against Islamic State has exacerbated a long-running sectarian conflict in Iraq, mostly between the Shi'ite majority and the Sunni minority.

Sectarian violence also threatens to undermine US-backed efforts to dislodge the militant group from vast areas of the north and west of Iraq that they seized in 2014.

AAP