A bus filled with passengers heading for the southern Shi’ite town of Nassiriyah was just pulling out of a busy station when the explosion was triggered.
Rescue workers frantically dragged burning victims from the wreckage.
Of those killed and the 25 injured, most were students, women and children.
Two nearby food stalls were gutted by the force of the bomb which sent shrapnel flying.
After a recent lull in violence over the past weeks, Iraq has again seen a surge in attacks as the country prepares to go to the polls to vote in a permanent parliament on December 15.
Growing frustration at the inability of the Iraqi government and security forces to rein-in the insurgency could see the country’s ruling United Iraqi Alliance suffer at the ballot box.
“This government has been a loser throughout the year. It didn’t do anything for the people. Instead things are even worse now,” Inas, a freelance translator working in Baghdad told the Agence France Presse (AFP) news service.
Fears over fate of US hostage
The past two weeks has also brought a rise in foreign abductions, the latest feared to have led to the execution of a US contract worker.
An internet statement believed to have been posted by the extremist Sunni group, the Islamic Army in Iraq, claims that an American hostage identified in a previous video as Ronald Schulz was killed after the US government failed to comply with a demand for the release of Iraqi prisoners.
“War criminal (US President George W Bush) continues with his arrogance and no one has any value unless they serve his criminal interests, therefore the American security adviser pig at the Housing Ministry has been killed,” the statement read.
The statement’s authenticity has not been verified, nor have authorities confirmed the identity of the man filmed in a video statement broadcast by al-Jazeera television on December 6 which featured images of a passport and a bank card bearing Ronald Schulz’s name.
“They’re 90 percent sure it’s him. I’ve sent he video, and I’m convinced it’s him,” Mr Schulz’s brother, Ed, told a local US newspaper.
Britain’s Foreign Secretary Jack Straw, meanwhile, has urged the kidnappers of four Christian peace activists to make contact.
“If the kidnappers want to get in touch with us, we want to hear what they have to say. We have people in Iraq, in the region, and they are ready to hear from the kidnappers,” Mr Straw said.
Seventy-four-year-old Briton, Norman Kember, was taken along with American, Tom Fox, 54, and Canadians, James Loney, 41, and Harmeet Singh Sooden, 32, on November 26.
A previously unknown group calling itself the Brigades of the Swords of Righteousness has demanded that the US and Britain free all prisoners held in Iraqi and coalition jails.
An initial deadline for December 8 has reportedly been extended to December 10.
Concerns are also growing for German archaeologist, Susanne Osthoff, 43, who was abducted with her Iraqi driver in northern Iraq on November 25 and has not been heard of since.
Meanwhile, France is battling to secure the release of French engineer, Bernard Planche, 52, who was apparently snatched at gunpoint from Baghdad on December 5.
The United Nations Secretary General Kofi Annan has called for the “immediate and unconditional” freedom of all civilians kidnapped in Iraq.
In a statement delivered by his spokesman Stephane Dujarric, the UN chief appealed for all sides “to respect at all times the fundamental principles of international humanitarian law.”
Australian commitment to stay
A decision by the Japanese government to maintain its deployment of Self-Defence troops in the southern Iraqi city of Samawah has met with the Howard government’s strongest indication yet of a commitment to keep Australian forces in Iraq through to the end of 2006.
Japan’s contingent of 600 non-combat soldiers are carrying out humanitarian and reconstruction projects under the protection of Australia’s 450-member military task force.
“I do welcome that decision by the Japanese government because I think that now is a bad time for countries to be talking about pulling out of Iraq,” said Australian Prime Minister John Howard in Canberra.
“We’ll continue to work with out Japanese friends, we’ll continue to provide security.”
“As to the long term details of that, that’s a matter that I will in all probability discuss with the Japanese prime minister Mr (Junichiro) Koizumi in Kuala Lumpur next week at the East Asian summit,” Mr Howard added.