IS fighters, who control Iraq's main northern city of Mosul, attacked a nearby dam and oil facility yesterday but Kurdish peshmerga deployed in the area fought them off.
The jihadist fighters "attacked a peshmerga post in Zumar (Friday) and a fierce battle erupted," an official in the Patriotic Union of Kurdistan told AFP.
He said 14 peshmerga fighters were killed there, a toll confirmed by a senior officer in the Kurdish force.
The PUK official said the peshmerga killed "around 100" IS fighters and captured 38 in a battle that lasted several hours.
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IS fighters, who had already been running large swathes of neighbouring Syria, launched a blistering offensive on June 9 that saw them capture Mosul, Iraq's second city, and move into much of the country's Sunni heartland.
Many government forces retreated in the face of the onslaught, and peshmerga troops seized the opportunity to fill the vacuum and seize long-coveted areas the Kurds were in dispute with Baghdad over.
Two other peshmerga were today killed in fighting that erupted in the nearby Kasak area close to a border crossing with Syria, a senior peshmerga source told AFP.
In equally intense overnight fighting on the main front south of Baghdad, at least 23 pro-government forces were killed by relentless mortar shelling of their positions in Jurf al-Sakhr.
IS militants began attacking the town late yesterday, killing 11 soldiers and 12 members of the Asaib Ahl al-Haq militia, an officer and army medic said.
Another seven soldiers were wounded during a subsequent government operation against jihadist fighters in Jurf al-Sakhr, Al-Hamya and Latifiya, the sources said, claiming 37 IS fighters were killed.