A car bomb attack claimed by the Islamic State jihadist group killed at least seven people near a hospital in central Baghdad, police said.

The blast was close to the site of a July bombing that killed more than 300 people, in the worst single bomb attack to ever hit the Iraqi capital.

An explosives-laden van exploded in Baghdad's Karrada neighbourhood a little before midnight (2100 GMT), setting several nearby shops on fire, police said.

A police colonel reported an initial toll of seven killed and at least 15 wounded for the blast, which went off near Abdel Majid hospital.

The figures were confirmed by interior ministry sources.

IS, a Sunni extremist organisation, claimed the bombing in a statement, saying it had targeted Shiites and warning of further attacks, US-based monitor SITE Intelligence Group reported.

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