UPDATE 3-Unrest spreads in Iraq as Iranian mission stormed, oil workers held hostage

Security sources said the consulate was empty when the crowd burst in.

Civil unrest fuelled by anger against perceived corruption and misrule by Iraq's political elite spread across the south of the country on Friday as protesters stormed the Iranian consulate in Basra while others took workers hostage at a nearby oilfield.

After five days of deadly demonstrations in Basra in which government buildings have been ransacked and set alight, protesters broke in and damaged the consulate's offices, shouting condemnation of what many perceive as Iran's sway over Iraq's political parties.

Security sources said the consulate was empty when the crowd burst in.

Late in the day some 65 kilometers north-west of Iraq's second biggest city, another group of civilians entered a water treatment facility linked to the West Qurna 2 oilfield, managed by Russia's Lukoil.

They were holding two Iraqi employees hostage, according to a Lukoil source and a source with Basra's energy policy.

West Qurna 2 produces 390-400,0000 barrels per day, the source said, adding that a disruption of three days would be enough to completely shut down the field.

The protests in Basra, led by residents who say they have been driven to the streets by corruption that allowed infrastructure to collapse, leaving no power or safe drinking water in the heat of summer, intensified on Monday.

Since then at least 11 demonstrators have died in the city of 2 million, mostly in clashes with security forces.

Since Thursday, protesters have shut Iraq's only major seaport at Umm Qasr, 60 km (40 miles) south of Basra. It remained shut on Friday, local officials and security sources said, although oil exports, carried out from offshore platforms, have not been affected.

Smaller protests also took place on Friday in other cities including Karbala and Baghdad.

The unrest has thrust Iraq into a major new crisis at a time when politicians have yet to agree on a new government after an inconclusive election in May. The new parliament finally met on Monday for the first time but broke up after a day having failed to elect even a speaker.

Prime Minister Haider al-Abadi's national security council met on Friday and said it was investigating casualties at the protests. Abadi, under pressure to promise more money to fix Basra's public services, said funds that had previously been allocated would be released.