Sunni insurgents seized a mainly ethnic Turkmen city in northwestern Iraq on Sunday after heavy fighting, solidifying their grip on the north after a lightning offensive that threatens to dismember Iraq.

Residents reached by telephone in the city of Tal Afar said it had fallen to the rebels from the Islamic State of Iraq and the Levant, or ISIS, after a battle that saw heavy casualties on both sides.

"The city was overrun by militants. Severe fighting took place, and many people were killed. Shia families have fled to the west and Sunni families have fled to the east," said a city official who asked not to be identified.