Kurdish Peshmerga fighters clash with ISIS militants

Footage has emerged on YouTube of Kurdish Peshmerga forces engaging with ISIS militants near the northern Iraq city of Kirkuk.

The clip has surfaced as a Kurdish spokesman claims that the key oil-producing city has "fallen into the hands of peshmerga" after elements of the Iraq army fled the area.

More: Turkey not planning 'cross border operations in Iraq'

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Islamic State leader calls for jihad in audio message

The leader of the Islamic State, formerly Isis, has released the first audiotape calling for jihad since the group renamed. The group is currently battling Iraqi forces across large parts of the country.