Iranian troops have entered southern Iraqi territory and taken control of an oil well, reports say.

An Iraqi official played down the incident, saying the area was abandoned and right on a disputed border section.

Iranian soldiers crossed the border and raised an Iranian flag over the Fakkah oil field, a US military spokesman told the AFP news agency.

But an Iranian oil company spokesman denied the accusation, saying no troops had taken control of any oil well.

"The company denies Iranian soldiers taking control of any oil well inside Iraqi territory," the National Iranian Oil Company spokesman was quoted as saying by Iranian media.

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