Baghdad: At least four people were killed and 13 others injured in a car bomb explosion in the capital of Baghdad on Sunday, the Interior Ministry said.

The incident occurred when a booby-trapped car was detonated at the crowded Mreidy Market in the predominantly Shia district of Sadr city, Xinhua cited the source as saying.

The powerful blast destroyed several nearby shops and many stalls and set fire to several civilian cars, the source said, adding the toll could rise further as many of the injured were in critical condition.

Iraq is currently witnessing a wave of violence since the IS terrorist group took control of part of Iraq's northern and western regions in June 2014.

Earlier, a UN report estimated more than 22,300 people were killed or injured in armed conflicts in Iraq in 2015.