The death toll from two bombings that hit Baghdad around midnight Saturday has risen to 82 dead and around 200 injured, police and medical sources told Reuters.
The blast targeted a busy shopping area in the Karada area of the Iraqi capital as people were out celebrating Ramadan.
Daesh claimed responsibility for the attack via a statement circulated online by the group's supporters.
Video footage posted on social media showed a large blaze in the main street of Karada, while Reuters videos showed at least four buildings damaged or partially collapsed.
In a separate attack, a roadside bomb detonated around the same time in a market in al-Shaab, a Shia district in the northern part of Baghdad, killing at least two people.
Iraqi forces dislodged Daesh militants from Fallujah after a month-long battle to retake the city. Daesh has launched numerous attacks on Iraqi civilians as the group has lost territory.