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A sickening video has been released by terrorist group ISIS, of two of its jihadi killers, detonating bombs inside a packed market in Iraq.

Many of the 27 killed were stood around a food stall, getting breakfast, when the two suicide bombers detonated their devices.

More than 50 people were injured in the blast in the Iraqi capital Baghdad on New Year's Eve.

No-one immediately claimed responsibility of the attack in the Al-Sinek area of the city, but today, ISIS released the footage and confirmed its involvement.

According to the Telegraph huge crowds were expected to gather on Saturday evening in the streets of Baghdad to celebrate the New Year for only the second time since the lifting in 2015 of a years-old curfew.

ISIS appears to be on its last legs and is defending its last centres in Iraq.

Iraqi Prime Minister Haider al-Abadi had vowed earlier in 2016 that his forces would rid the country of IS by the end of the year but the Mosul operation has been slower moving that expected.

(Image: Haidar Hamdani/AFP/Getty) (Image: Sabah Arar/AFP/Getty)

This week he told a televised news conference that Iraqi forces would now require at least another three months.