A car bomb has killed at least 64 people and wounded dozens more at a crowded market in northern Baghdad.

The Islamic State (IS) has claimed responsibility for the bomb, which targeted a Shia district of the Sadr City during rush hour.

IS claims to have targeted Shia militiamen, but officials say many of the victims were women and children and damaged a number of nearby buildings.

The Sunni terror group regularly targets Shia groups for what it claims are heretic beliefs, and markets have provided a way to cause mass civilian casualties.

In February, IS killed 70 people with twin bomb blasts at another busy market in Sadr City.

IS has been on the back foot in recent months, with the Iraqi military and various militias regaining territory in the north of the country and making strides towards Mosul, the largest city on IS control.

In Syria, the Kurdish YPG and other rebel groups have also been beating IS back with the help of US-led air strikes.

#BreakingNews:
Car bomb at a market Al-Sadr city #Baghdad: 21 killed/45 wounded (1st count). #Iraq. FT v @Khaqani_M pic.twitter.com/AWbJhjELic

— Elijah J. Magnier (@EjmAlrai) May 11, 2016