BAQUBA, Iraq (REUTERS) - At least two people were killed and 20 were wounded after a bomb went off on Saturday (June 9) at a market in the Iraqi town of Khalis in Diyala province, security sources said.

No further details were immediately available on who was targeted or who was responsible for the blast, which happened a before sunset when Muslims break their fast during the holy month of Ramadan.

Diyala is a mixed province where both Sunni Arabs and Shi'ite Arabs live.

Iraq declared victory over Islamic State in Iraq and Syria in December.

But security officials have said the hardline militant group is likely to wage an insurgency in Iraq after its self-proclaimed caliphate collapsed and the militants were dislodged from all the territory they held in the country.

A local official said earlier this week that the militants had become active again in areas between the Diyala and the neighbouring Salahuddin province.