Tony Abbott says violence in the north is a humanitarian disaster for civilians and fast becoming an international crisis

Tony Abbott has warned that Iraq could become a terrorist state, as Australia continues talks with the US on how to handle escalating tensions in the country.

Asked about the violence in Iraq’s north, the prime minister told parliament there was already a humanitarian and security crisis in Iraq as the insurgent group Islamic State of Iraq and Syria (Isis) took control of parts of the north and central Iraq over three days.

“As things stand, it is a humanitarian disaster for the people of those sections of Iraq which is now fallen under the control of this group,” he said.

“Should the control of this group be consolidated, we are faced with a situation of a terrorist state, a terrorist state with considerable sway over a quite sophisticated, or parts of quite a sophisticated, country. Not only is it a humanitarian disaster for the people of those sections of Iraq, it is a security disaster for the Middle East and for the wider world.”

Abbott said he was in discussions with the US because it was “the sort of thing that is natural between two very, very close allies”. He said while they were still in the consultation stages nobody should underestimate how serious the situation was.

“It seems that this group has proceeded through Iraq with maximum violence and terror to the civilian population and has behaved with extraordinary brutality towards surrendering Iraqi soldiers and policemen,” he said.

It is believed about 90 Australians are in Iraq and the official advice from the Department of Foreign Affairs and Trade is to leave immediately. Australian consular staff in the country have been evacuated, although a skeleton staff remains.

Abbott labelled Isis a “radical” and “extreme” Islamist group and earlier on Monday the foreign minister, Julie Bishop, played down the prospect of Australian soldiers joining any military action.

“There’s been no indication that the United States would like us to help and at present our focus is on protecting Australian citizens and our interests in Iraq,” she said.

“... There hasn’t been [a request for help] to date, there’s been no indication that the United States would like us to help.”

Bishop has also urged Australians to leave Iraq, noting commercial flights were still operating.

“Those who choose to remain should make arrangements in line with their own personal circumstances and ensure that they have contingency plans due to the very challenging security environment.

“We are unlikely to be able to provide the level of consular assistance that might be expected in Iraq at this time so those concerned about the welfare of their family and friends in Iraq should attempt to make direct contact with them,” she said.

Bishop signalled humanitarian action is more important to Australia than military action, saying Australia was also in talks with the UK and was prepared to help provide humanitarian support if requested.

According to Bishop there are about 500,000 people fleeing cities in north-west Iraq, 300,000 more people displaced from conflicts earlier this year and about 225,000 Syrian refugees.