The commander explained that the Iraqi Security Forces (ISF) were in the vicinity of one of the strikes loaded with what is likely a low-grade chemical agent, and received appropriate level of medical care after the attack.
No official identification of the agent used in the attack was released so far, but according to the CBS report it was mustard gas.
Thousands of Muslims have died in Mosul and ISIS is ramping up to kill even more with their Chemical Weapon arsenal.
The operation to retake Iraq's second-largest city is now in its sixth month, but Martin said he has no concern about the progress. Gen. Yahya Rasool told The Associated Press that six soldiers suffered breathing problems from the attack on Sunday and were treated in a nearby field clinic.
He also declined to comment whether USA or Australian military advisers were embedded in the Iraqi unit at the time of the attack. He said the attack was delivered by "indirect fire" - a term typically used to describe mortar or rocket fire. Their unit included American and Australian advisers, none of whom were reported injured in the attack.
According to al-Asadi, the attack left 16 people dead - including women and children - and caused significant material damage in the area.
Iraqi forces, however, continue to engage in fierce street fighting with Daesh militants in western Mosul's Al-Farouk and Al-Bursa neighborhoods, al-Khafaji said.
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Asked if he was saying no USA or Australian forces had been exposed to chemicals, Martin said: "We have not confirmed exposure at this time". Our role as an independent, fact-based news organization has never been clearer. Subscriptions start as low as 25¢ per day.