At least 40 people were killed and more than 50 others wounded on Friday when a truck bomb exploded in northeastern Iraqi capital Baghdad, a security source.

The source told Xinhua that the truck bomb, which was carrying a large amount of explosive materials, exploded late Friday in a popular market area of Khan Bani Saad, 10 km south of Baquba, which is predominantly Shiite Muslims.

The source said the blast killed at least 40 people, noting that many of the victims' bodies were charred or cut into small pieces as a result of the blast.

The source confirmed that the wounded people were rushed to nearby hospitals for treatment, further indicating that the death toll is still preliminary and would be increased due to the presence of many serious injuries.

It added that the blast also destructed and burned dozens of shops and civilian cars, indicating that the security forces have sealed off the scene with anticipation of further attacks.

The security situation in Iraq has drastically deteriorated since June 2014, when bloody clashes broke out between security forces and Islamic State militants.