Insurgents are said to have taken over three-quarters of Iraq's biggest oil refinery after launching a mortar and machine-gun assault.
Smoke was seen billowing from the Baiji complex as officials confirmed it had been infiltrated by Islamic State of Iraq and Syria (ISIS) militants.
Production had already ceased at the refinery, north of Baghdad, after clashes nearby.
The attack comes as it emerged that ISIS charts its brutality in annual reports called al-Naba - The Report.
The 2013 version cites 10,000 operations in Iraq, including 1,000 assassinations and 4,000 improvised explosive devices planted.
The US-based Institute for the Study of War has analysed the 2012 and 2013 reports and corroborates much of the information they contain.
Other claims in the 2013 report include the freeing of hundreds of radical prisoners - and hundreds of "apostates" being turned.
Meanwhile, Iranian President Hassan Rouhani said "the great Iranian people will do everything to protect" revered Shiite shrines in Iraq from Sunni fighters.
Kurdish fighters in the north of the country have begun a counter-offensive against ISIS militants, but as the insurgents continue their move towards Baghdad, Mr al Maliki has sacked four top security officers for failing to prevent Mosul, Iraq's second biggest city, from falling into terrorist hands.
The city is one of a number in the north of Iraq to have fallen.
Some 44 prisoners were killed when insurgents attempted to storm a jail in Baquba - less than 40 miles from Baghdad.
The bodies of 18 Iraqi security personnel were also discovered outside the city of Samarra.
President Barack Obama announced on Monday that up to 275 troops would be sent to Iraq to safeguard US personnel and the US embassy.
The US has called on Mr Maliki to forge closer ties with Sunni critics of his Shi'ite-led government.
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