At least 11 people were also killed in a suicide auto bomb attack claimed by IS Wednesday on the edge of Sadr City, a northern neighbourhood of the Iraqi capital that has been repeatedly targeted.
The blast occurred in the morning when a booby-trapped auto detonated at the industrial area in the Shiite neighborhood of Baiyaa, the source said on condition of anonymity.
The attack is the second to hit a auto market this week and comes amid a wave of deadly violence in the Iraqi capital. The Sunni extremist group said it was targeting Shiite Muslims.
At least 51 people have died and more than 60 have been injured after a bombing in Baghdad.
The responsibility for the recent attack have not been immediately vindicated by any terrorist organization.
"This bombing comes as Iraq's security forces gear up to begin an assault on ISIS in the west side of the northern city of Mosul", Alice adds.
IS has increased its bombing campaign in Iraq in recent weeks at a time when US -backed Iraqi forces are advancing in their drive to push the Sunni-led extremist group from the cities it has occupied in Iraq and Syria since 2014. The militants also control parts of neighbouring Syria.