ISIL declares 'caliphate' as Iraq presses counter-offensive

The ISIL jihadists whose sweeping Sunni militant offensive has captured swathes of Iraq have declared an "Islamic caliphate" in their territory as Iraqi forces battle to retake Saddam Hussein's hometown Tikrit.

The Islamic State of Iraq and the Levant (ISIL) on June 29 announced it was establishing a "caliphate" - an Islamic form of government last seen under the Ottoman Empire - extending from Aleppo in northern Syria to Diyala in Iraq, the regions where ISIL has fought against the regimes in power.

In an audio recording distributed online, ISIL declared its chief Abu Bakr al-Baghdadi "the caliph" and "leader for Muslims everywhere." Though the move may not have a significant impact on the ground, it is an indicator of the group's confidence.

The crisis in Iraq is said to rival the brutal sectarian war of 2006-2007, with more than 1,000 killed and hundreds of thousands displaced within weeks.

Alarmed world leaders have urged a speeding up of government formation following April elections, warning the conflict cannot be resolved by force alone.

While beleaguered Prime Minister Nuri al-Maliki has conceded a political solution is necessary, his office has for days touted the Tikrit operation, which could be crucial tactically, and for morale in the security forces.

"The security forces are advancing from different areas" around Tikrit, said Lieutenant General Qassem Atta. "There are ongoing clashes." Atta said troops had detonated bombs planted along routes into the city, which militants took more than two weeks ago.

Witnesses reported waves of government air strikes in central Tikrit and Saddam's former palace compound in the city.  The Iraqi forces, according to Atta, are coordinating with recently-arrived...