Jihadist fighters launched an attack on Rutba, a remote but strategic town near the Jordanian border in Anbar province, early yesterday.
They briefly seized the mayor's office before being pinned back by the security forces but were still deployed in some other neighbourhoods of the town, the officers said.
"Daesh (IS) controls Mithaq and Intisar neighbourhoods in central Rutba," an army colonel told AFP.
"They captured people -- civilians and policemen -- and executed them," he said. "At least five people were executed" on Sunday, the colonel said.
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The attack on Rutba was seen as a fresh attempt by IS to draw attention and Iraqi military resources away from Mosul, which is their last major stronghold in the country.
Tens of thousands of Iraqi forces launched an offensive on Mosul a week ago. IS is vastly outnumbered and the outcome of the battle appears to be in little doubt.
On Friday, dozens of jihadist fighters launched a spectacular attack on the Kurdish-controlled city of Kirkuk that killed at least 46 people, most of them members of the security forces.
The Joint Operations Command overseeing the fight against IS in Iraq said that jihadists launched their attack on Rutba at dawn on Sunday.
After forcing the attackers out of the mayor's office, Iraqi forces destroyed 12 IS vehicles, killing their occupants, the JOC said in a statement.
Iraqi forces have in recent months retaken a lot of ground from IS in Anbar, a vast Sunni province which has long been considered an insurgent bastion and has borders with Syria, Jordan and Saudi Arabia.
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