Eight killed in Baghdad market bombing

AAP
A a car bomb has exploded in the wholesale Jamila market in Baghdad's Shiite district of Sadr City.

A car bomb has killed at least eight people in a crowded vegetable market in a Shi'ite Muslim district of Baghdad in an attack claimed by Islamic State.

The car detonated in the eastern district of Jamila, police say, as Iraqi government forces were preparing to declare victory over the Sunni Muslim militants of Islamic State more than 400 km further north in the city of Tal Afar.

Medics and police sources said eight people died and 25 were wounded.

Interior Ministry spokesman Brigadier General Saad Maan said four people were killed and 12 wounded, including two policemen.

Islamic State's Amaq news agency said the bombing had been intended to target Shi'ite Muslims, but reported it took place in the neighbouring Sadr City district.

It was not immediately clear if a suicide bomber drove the vehicle to the target or if it was a parked car bomb, police sources said.